TGI — Annual Report 2019

Nov 13, 2019

1802

TAIWAN GLASS INDUSTRIAL CORPORATION PARENT COMPANY ONLY FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS’ REPORT FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

Address: 11[th] Floor, No. 261, Sec. 3, Nanjing E. Rd., Taipei, Taiwan, R.O.C. Telephone: 886-2-2713-0333

The reader is advised that these parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

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English Translation of Financial Statements Originally Issued in Chinese TAIWAN GLASS INDUSTRIAL CORPORATION PARENT COMPANY ONLY BALANCE SHEETS December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

ASSETS	NOTE	As of Dec	ember 31,	LIABILITIES AND EQUITY	NOTE	As of December 31,
		2019	2018			2019 2018
Current assets Cash and cash equivalents Notes receivable, net Accounts receivable, net Other receivables, net Current income tax assets Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income - non-current Investments accounted for using the equity method Property, plant and equipment Right-of-use assets Deferred tax assets Other non-current assets Total non-current assets Total assets	4, 6(1) 4, 6(2) 4, 6(3), 7 4, 6(4), 7 4 4, 6(5) 7 7,8 4, 6(6) 4, 6(7) 4, 6(8) 4, 6(9), 6(19), 7 4, 6(23) 6(10)	$507,190 138,109 1,369,794 150,155 142 3,633,098 485,581 4,864	$584,331 167,377 1,145,522 204,986 8,371 3,143,647 631,172 4,559	Current liabilities Short-term loans Short-term bills payable Contract liabilities - current Accounts payable Other payables Current income tax liabilities Current lease liabilities Advance receipts Current portion of long-term loans Other current liabilities, others Total current liabilities Non-current liabilities Long-term loans Deferred tax liabilities Non-current lease liabilities Accrued pension liabilities Deposits-in Total non-current liabilities Total liabilities Capital Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Other components of equity Exchange differences on translation of foreign operations Unrealized gains and losses on financial assets at fair value through other comprehensive income Total other components of equity Total equity Total liabilities and equity	6(11) 6(12) 4, 6(16), 7 7 7 4 4, 6(19), 7 7 6(13) 7 6(13) 4, 6(23) 4, 6(19), 7 4, 6(14) 6(15) 6(15), 6(25) 6(15) 4	$2,000,000 $1,900,000 3,741,006 3,295,570 415,347 722,780 1,159,372 803,267 2,441,800 705,131 - 65,043 37,051 - 1,090 1,453 4,014,242 5,251,607 17,493 17,837
		6,288,933	5,889,965
		257,667 40,221,358 15,619,637 105,383 382,396 48,502	263,332 42,340,992 15,072,246 - 344,928 38,241
						13,827,401 12,762,688
						8,119,091 6,233,333 288,170 294,147 65,302 - 459,072 413,265 759 791
						8,932,394 6,941,536
		56,634,943	58,059,739			22,759,795 19,704,224
		$62,923,876	$63,949,704			29,080,608 29,080,608 1,925,218 1,925,218 5,935,764 5,829,135 5,102,550 5,102,550 2,496,601 4,973,947
						13,534,915 15,905,632
						(4,256,371) (2,551,354) (120,289) (114,624)
						(4,376,660) (2,665,978)
						40,164,081 44,245,480
						$62,923,876 $63,949,704

The accompanying notes are an integral part of the parent company only financial statements.

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English Translation of Financial Statements Originally Issued in Chinese

TAIWAN GLASS INDUSTRIAL CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars Except Earnings Per Share Information)

Operating revenues Operating costs Gross profit Unrealized intercompany profit Realized intercompany profit Net gross profit Operating expenses Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gains Subtotal Net amount of other revenues and gains and expenses and losses Operating loss Non-operating income and expenses Other income Other gains and losses Financial costs Share of (loss) income of subsidiaries, associates and joint ventures for under equity method Subtotal (Loss) Income from continuing operations before income tax Income tax benefit (expense) Net (loss) income from continuing operations Other comprehensive income Other comprehensive income that will not be reclassified subsequently: Remeasurement of defined benefit obligation Unrealized losses on equity instruments investments at fair value through other comprehensive income Share of other comprehensive loss of subsidiaries, associates and joint ventures for under equity method Income tax related to components of other comprehensive income that will not be reclassified subsequently Other comprehensive income that will be reclassified subsequently: Share of other comprehensive loss of subsidiaries, associates and joint ventures for under equity method Income tax related to components of other comprehensive income that will be reclassified subsequently Total other comprehensive income, net of tax Total comprehensive income Earnings per share (NT$) Earnings per share-basic Diluted earnings per share	Note	For theyears ended December 31,	For theyears ended December 31,
		2019	2018
	4, 6(16), 7 6(5),6(19), 6(20), 7 6(17), 6(19), 6(20), 7 6(18), 7 6(21), 7 6(21), 7 4, 6(21), 7 4 4, 6(23) 4, 6(14), 6(22), 6(23) 6(24)	$11,702,108 (10,695,337)	$12,561,584 (10,811,575) 1,750,009 24,547 7,913 1,782,469 (1,684,256) (273,636) (92,818) 292 (2,050,418) 25,417 (242,532) 226,266 (14,110) (241,207) 1,383,482 1,354,431 1,111,899 (45,613) 1,066,286 (390,304) (900) (3,358) 101,650 (932,623) - (1,225,535) $(159,249) $0.37 $0.37
		1,006,771
		11,382 (24,547)
		993,606
		(1,615,838) (251,336) (51,691) 85
		(1,918,780)
		2,957
		(922,217)
		224,373 (98,908) (270,275) (400,980)
		(545,790)
		(1,468,007) 19,557
		(1,448,450)
		(63,970) (5,665) (701) 12,794 (1,705,017) -
		(1,762,559)
		$(3,211,009)
		$(0.50)

The accompanying notes are an integral part of the parent company only financial statements.

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English Translation of Financial Statements Originally Issued in Chinese

TAIWAN GLASS INDUSTRIAL CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

Adjusted balance as of January 1, 2018 Appropriations and distributions of 2017 earnings: Legal reserve Cash dividends Net income in 2018 Other comprehensive income, net of tax in 2018 Total comprehensive income Increase (decrease) through changes in ownership interests in subsidiaries Decrease through changes in associates accounted for using equity method Balance as of December 31, 2018 Effects of retrospective application and retrospective restatement Adjusted balance as of January 1, 2019 Appropriations and distributions of 2018 earnings: Legal reserve Cash dividends Net loss in 2019 Other comprehensive income, net of tax in 2019 Total comprehensive income Balance as of December 31, 2019	Capital	Additional Paid-in Capital	Legal Reserve	Special Reserve	Unappropriated Retained Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gains and Losses on Financial Assets at Fair Value through Other Comprehensive Income Total Equity
	$29,080,608	$1,921,575	$5,616,758 212,377	$5,102,550	$6,046,802 (212,377) (1,454,030) 1,066,286 (292,012)	$(1,615,309) (932,623)	$(113,724) $46,039,260 - (1,454,030) 1,066,286 (900) (1,225,535)
	-	-	-	-	774,274	(932,623)	(900) (159,249)
		3,643			(180,722)	(3,422)	221 (180,722)
	29,080,608	1,925,218	5,829,135	5,102,550	4,973,947 2,028	(2,551,354)	(114,624) 44,245,480 2,028
	29,080,608	1,925,218	5,829,135 106,629	5,102,550	4,975,975 (106,629) (872,418) (1,448,450) (51,877)	(2,551,354) (1,705,017)	(114,624) 44,247,508 - (872,418) (1,448,450) (5,665) (1,762,559)
	-	-	-	-	(1,500,327)	(1,705,017)	(5,665) (3,211,009)
	$29,080,608	$1,925,218	$5,935,764	$5,102,550	$2,496,601	$(4,256,371)	$(120,289) $40,164,081

The accompanying notes are an integral part of the parent company only financial statements.

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English Translation of Financial Statements Originally Issued in Chinese

TAIWAN GLASS INDUSTRIAL CORPORATION PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: (Loss) Income before income tax Adjustments: Depreciation (including investment property) Amortization Expected credit losses and gains Interest expenses Interest income Dividend income Share of loss (income) of subsidiaries, associates and joint ventures Gains on disposal of property, plant and equipment Loss on disposal of investment Unrealized intercompany profit Realized intercompany profit Changes in assets and liabilities: Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Contract liabilities Accounts payable Other payable Advanced receipts Other current liabilities, others Net defined benefit liability Cash inflow generated from operations Interests received Dividends received Interests paid Income tax paid Net cash flows (used in) provided by operating activities Cash flows from investing activities: Acquisition of investments accounted for using the equity method Disposal of subsidiaries Acquisition of property, plant and equipment, excluding capitalized borrowing costs Capitalized borrowing costs from self-constructed assets Proceeds from disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term loans Decrease in short-term loans Increase in short-term bills payable Decrease in short-term bills payable Proceeds from long-term loans Repayments of long-term loans Decrease in deposits-in Increase in other paybles to related parties Payments of lease liabilities Cash dividends paid Net cash flows provided by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

Forthe years endedDecember31,

2019 2018 $(1,468,007) $1,111,899 1,210,620 1,188,429 4,258 3,391 (85) (292) 270,275 241,207 (1,624) (2,594) (7,493) (13,998) 400,980 (1,383,482) (2,957) (25,417) - 86 (11,382) (24,547) 24,547 (7,913) 29,268 38,351 (224,187) 218,503 54,831 116,570 (489,451) (750,122) 145,591 56,391 (305) (3,763) (307,433) (188,352) 356,105 (726) (39,357) (54,110) (363) (1,343) (344) 2,697 (18,163) (17,616) (74,676) 503,249 1,624 2,594 7,493 21,998 (268,712) (241,258) (67,908) (5,485) (402,179) 281,098 - (1,434,796) - 18,172 (1,528,626) (1,136,432) (18,966) (12,388) 5,662 13,569 4,324 (2,274) (799) (3,276) (1,538,405) (2,557,425) 1,000,000 1,600,000 (900,000) - 16,400,000 11,250,000 (15,950,000) (10,150,000) 1,740,000 3,810,000 (1,091,607) (3,283,360) (32) (12) 1,580,000 - (55,892) - (859,026) (1,453,967) 1,863,443 1,772,661 (77,141) (503,666) 584,331 1,087,997 $507,190 $584,331

The accompanying notes are an integral part of the parent company only financial statements.

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English Translation of Financial Statements Originally Issued in Chinese

TAIWAN GLASS INDUSTRIAL CORPORATION

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS For the Years Ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1. History and organization

Taiwan Glass Industrial Corporation (“the Company”) was incorporated on September 5, 1964 and commenced operations in 1967. The main activities of the Company are manufacturing, processing and selling of various glass products. The Company’s common shares were publicly listed on the Taiwan Stock Exchange (TWSE) in July 1973. The Company’s registered office and the main business location is at 11F, No. 261, Section 3, Nanjing E. Rd., Taipei, Republic of China (R.O.C.).

2. Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended December 31, 2019 and 2018 were authorized for issue by the Board of Directors on March 16, 2020.

3. Newly issued or revised standards and interpretations

• (1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2019. Apart from the impact of the standards and interpretations which is described below, all other standards and interpretations have no material impact on the Company’s financial position and performance.

(1) IFRS 16“Leases”

IFRS 16 “Leases” replaces IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, SIC-15 “Operating Leases - Incentives” and SIC-27 “Evaluating the Substance of Transactions Involving the Legal Form of a Lease”.

The Company followed the transition provision in IFRS 16 and the date of initial application was January 1, 2019. The impacts arising from the adoption of IFRS 16 are summarized as follows:

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• A. Please refer to Note 4 for the accounting policies before or after January 1, 2019.

• B. For the definition of a lease, the Company elected not to reassess whether a contract was, or contained, a lease on January 1, 2019. The Company was permitted to apply IFRS 16 to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 but not to apply IFRS 16 to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4. That is, for contracts entered into (or changed) on or after January 1, 2019, the Company need to assess whether contacts are, or contain, leases applying IFRS 16. In comparing to IAS 17, IFRS 16 provides that a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assessed most of the contracts are, or contain, leases and no significant impact arose.

• C. The Company is a lessee and elects not to restate comparative information in accordance with the transition provision in IFRS 16. Instead, the Company recognized the cumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application.

• (a) Leases previously classified as operating leases

For leases that were previously classified as operating leases applying IAS 17, the Company measured and recognized those leases as lease liability on January 1, 2019 at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019, and; the Company chose, on a leaseby-lease basis, to measure the right-of-use asset at either:

• i. its carrying amount as if IFRS 16 had been applied since the commencement date, but discounted using the lessee’s incremental borrowing rate on January 1, 2019

On January 1, 2019, the Company’s right-of-use asset increased by NT$120,519 thousand, and lease liability increased by NT$118,371 thousand. The difference is adjusted to retained earnings and investments accounted for using the equity method for NT$2,148 thousand and NT$(120) thousand, respectively; total influemce is NT$2,028 thousand.

In accordance with the transition provision in IFRS 16, the Company used the following practical expedients on a lease-by-lease basis to leases previously classified as operating leases:

• i. Apply a single discount rate to a portfolio of leases with reasonably similar characteristics.

• ii. Rely on its assessment of whether leases are onerous immediately before January 1, 2019 as an alternative to performing an impairment review.

• iii. Elect to account in the same way as short-term leases to leases for which the lease term ends within 12 months of January 1, 2019.

• iv. Exclude initial direct costs from the measurement of the right-of-use asset on January 1, 2019.

• v. Use hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.

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• (b) Please refer to Note 4 and Note 6 for additional disclosure of lessee and lessor which required by IFRS 16.

• (c) As of January 1, 2019, the impacts arising from the adoption of IFRS 16 are summarized as follows:

• i. The weighted average lessee’s incremental borrowing rate applied to lease liabilities recognized in the balance sheet on January 1, 2019 was 1.617%.

• ii. The explanation for the difference of 20,373 thousand between: 1) operating lease commitments disclosed applying IAS 17 as of December 31, 2018, discounted using the incremental borrowing rate on January 1, 2019; and 2) lease liabilities recognized in the balance sheet as of January 1, 2019 is summarized as follows:

Operating lease commitments disclosed applying IAS 17 as of December 31, 2018 Discounted using the incremental borrowing rate on January 1, 2019 Add: Single immaterial operating lease commitments discounted using the incremental borrowing rate on January 1, 2019 The carrying value of lease liabilities recognized as of January 1, 2019	$100,897
	$97,998 20,373
	$118,371

• D. The Company is a lessor and has not made any adjustments. Please refer to Note 4 and Note 6 for the information relating to the lessor.

• (2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Definition of a Business - Amendments to IFRS 3	January1,2020
b	Definition of Material - Amendments to IAS 1 and 8	January1,2020
c	Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39 and IFRS 7	January 1, 2020

• (a) Definition of a Business - Amendments to IFRS 3

The amendments clarify the definition of a business in IFRS 3 Business Combinations. The amendments are intended to assist entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition.

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IFRS 3 continues to adopt a market participant’s perspective to determine whether an acquired set of activities and assets is a business. The amendments clarify the minimum requirements for a business; add guidance to help entities assess whether an acquired process is substantive; and narrow the definitions of a business and of outputs; etc.

• (b) Definition of a Material - Amendments to IAS 1 and 8

The main amendment is to clarify new definition of material. It states that “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information. An entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the financial statements.

• (c) Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39 and IFRS 7 The amendments include a number of exceptions, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is directly affected if the interest rate benchmark reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument. Hence, the entity shall apply the exceptions to all hedging relationships directly affected by the interest rate benchmark reform.

The amendments include:

• i. highly probable requirement When determining whether a forecast transaction is highly probable, an entity shall assume that the interest rate benchmark on which the hedged cash flows are based is not altered as a result of the interest rate benchmark reform.

• ii. prospective assessments When performing prospective assessments, an entity shall assume that the interest rate benchmark on which the hedged item, hedged risk and/or hedging instrument are based is not altered as a result of the interest rate benchmark reform.

• iii. IAS 39 retrospective assessment An entity is not required to undertake the IAS 39 retrospective assessment (i.e. the actual results of the hedge are within a range of 80–125%) for hedging relationships directly affected by the interest rate benchmark reform.

• iv. separately identifiable risk components For hedges of a non-contractually specified benchmark component of interest rate risk, an entity shall apply the separately identifiable requirement only at the inception of such hedging relationships.

The amendments also include the end of application of the exceptions requirements and the related disclosures requirements of the amendments.

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after January 1, 2020. The abovementioned standards and interpretations have no material impact on the Company.

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• (3) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are not endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 17 Insurance Contracts	January 1, 2021
c	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	January 1, 2022

• (a) IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full. IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

• (b) IFRS 17 Insurance Contracts

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The fulfilment cash flows comprise of the following:

• i. estimates of future cash flows;

• ii. Discount rate: an adjustment to reflect the time value of money and the financial risks related to the future cash flows, to the extent that the financial risks are not included in the estimates of the future cash flows; and

• iii. a risk adjustment for non-financial risk.

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The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims. Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

• (c) Classification of Liabilities as Current or Non-current – Amendments to IAS 1

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the standards and interpretations listed under (1), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

4. Summary of significant accounting policies

(1) Statement of compliance

The parent company only financial statements of the Company for the years ended December 31, 2019 and 2018 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

(2) Basis of preparation

The Company prepared parent company only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value.

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(3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT dollars, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at its respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

• A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

• B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

• C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

Each foreign operations of the Company determines its own functional currency and items included in the financial statements of each foreign operations are measured using that functional currency. The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following are accounted for as disposals even if an interest in the foreign operation is retained by the Company: the loss of control over a foreign operation, the loss of significant influence over a foreign operation, or the loss of joint control over a foreign operation.

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On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or jointly controlled entity that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

An asset is classified as current when:

• A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

• B. The Company holds the asset primarily for the purpose of trading; or

• C. The Company expects to realize the asset within twelve months after the reporting period; or

• D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

• A. The Company expects to settle the liability in its normal operating cycle; or

• B. The Company holds the liability primarily for the purpose of trading; or

• C. The liability is due to be settled within twelve months after the reporting period; or

• D. The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value (include fixed-term deposits that have maturities of 3 months from the date of acquisition).

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(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

• A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

• a. the Company’s business model for managing the financial assets and

• b. the contractual cash flow characteristics of the financial asset.

Financial asset measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, accounts receivables, financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

• a. the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

• b. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

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Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• a. purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• b. financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

• a. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

• b. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

• a. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

• b. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

• c. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (a) Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• (b) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

• a. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• b. the time value of money; and

• c. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

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The loss allowance is measured as follows:

• a. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

• b. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

• c. For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

• d. For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

• C. Derecognition of financial assets

A financial asset is derecognized when:

• a. The rights to receive cash flows from the asset have expired

• b. The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred

• c. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

• D. Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

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Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

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(8) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• A. In the principal market for the asset or liability, or

• B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(9) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and conditions are accounted for as follows:

A.Raw materials – Purchase cost on a weighted average cost basis.

• B.Finished goods and work in progress – Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

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(10) Investments accounted for using the equity method

The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments in accordance with Article 21 of the Regulations. Such adjustments were made after the Company considered the different accounting treatments to account for its investments in subsidiaries in the consolidated financial statements under IFRS 10 “Consolidated and Separate Financial Statements” and the different IFRSs adopted from different reporting entity’s perspectives, and the Company recorded such adjustments by crediting or debiting to investments accounted for under the equity method, share of profit or loss of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures.

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.

Under the equity method, the investment in the associate or a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate or a joint venture. After the interest in the associate or a joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or a joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or a joint venture are eliminated to the extent of the Company’s related interest in the associate.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company’s percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture in proportion.

When the Company subscribes for additional associate or a joint venture’s new shares at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate or a joint venture. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to paid-in capital and the investment under equity method. When the investment percentage decreases, reclassify the account which recognized to comprehensive income before to the gain or loss and suitable account in proportion.

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The financial statements of the associate or a joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures . If there is any objective evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or a joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in the scope of IAS 36 Impairment of Assets. If the recoverable amount is under the investment value in use, the Company uses the following measurements to determine the relevant value:

• A. The Company’s right on the estimated future cash flow from its associate or a joint venture includes associate or a joint venture’s cash flow from operation and the capital gain on the final settlement. Or

• B. The Company’s expected present value of the dividend from the investment and the capital gain on the final settlement.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets .

Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(11) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment . When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

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Depreciation is calculated on a straight-line method basis over the estimated economic lives of the following assets:

Buildings 5~55 years Machinery and equipment 1~20 years Transportation equipment 5~10 years Office equipment 3~20 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

(12) Leases

The accounting policy from January 1, 2019 as follows:

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

• A. the right to obtain substantially all of the economic benefits from use of the identified asset; and

• B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

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At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

• A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• C. amounts expected to be payable by the lessee under residual value guarantees;

• D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

• E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

• A. the amount of the initial measurement of the lease liability;

• B. any lease payments made at or before the commencement date, less any lease incentives received;

• C. any initial direct costs incurred by the lessee; and

• D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the rightof-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

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For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

The accounting policy before January 1, 2019 as follows:

Company as a lessee

Finance leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in profit or loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognized as an expense on a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

(13) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cashgenerating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(14) Revenue recognition

The Company’s revenue arising from contracts with customers are primarily related to sale of goods and rendering of services. The accounting policies are explained as follows:

Sale of goods

The Company manufactures and sells machinery. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main product of the Company is glass(flat glass, glass fiber, and glass container) and revenue is recognized based on the consideration stated in the contract. For certain sales of goods transactions, they are usually accompanied by volume discounts (based on the accumulated total sales amount for a specified period). Therefore, revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts. to the Company estimates the discounts using the expected value method based on historical experiences. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the uncertainty associated with the variable consideration is subsequently resolved. During the period specified in the contract, refund liability is recognized for the expected volume discounts.

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The credit period of the Company’s sale of goods is from 5 to 255 days. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as accounts receivables. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For other services contracts, part of the consideration was received from customers upon signing the contract, and the Company has the obligation to provide the services subsequently; accordingly, these amounts are recognized as advance receipts or temporary receipts.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component arosed.

(15) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(16) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the Company’s parent company only financial statements.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and

B. the date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

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(17) Income taxes

Income tax expense (benefit) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax on undistributed retained earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Stockholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

• A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• B. In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

• A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

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Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

5. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s parent company only financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

A. Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flow model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

B. Inventories

The Company estimates the net realizable value of inventory for damage, obsolescence and price decline. The net realizable value of the inventory is mainly determined based on reliable evidence of expected cash flow. Please refer to Note 6.

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C. Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date less incremental costs that would be directly attributable to the disposal of the asset or cash generating unit. The value in use calculation is based on a discounted cash flow model. The cash flows projections are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different cash generating units, including a sensitivity analysis, are further explained in Note 6.

D. Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate and expected rate of salary increases.

E. Revenue recognition – sales returns and allowance

The Company estimates sales returns and allowance based on historical experience and other known factors at the time of sale, which reduces the operating revenue. In assessing the aforementioned sales returns and allowance, revenue is recognized to the extent it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Please refer to Note 6 for more details.

F. Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Company’s domicile.

34

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies. Please refer to Note 6 for more details on unrecognized deferred tax assets.

6. Contents of significant accounts

(1) Cash and cash equivalents

Cash on hand Checking and savings accounts Equivalent cash Total	As of December 31,	As of December 31,
	2019	2018
	$190 507,000 -	$190 502,914 81,227
	$507,190	$584,331

(2) Notes receivable, net

Notes receivable arising from operating activities Less: loss allowance Total	As of December 31,	As of December 31,
	2019	2018
	$138,109 -	$167,377 -
	$138,109	$167,377

Notes receivables were not pledged.

The Company assesses impairments according to IFRS 9 to assess the impairment. Please refer to Note 6.(17) for more details on loss allowance and Note 12 for details on credit risk.

(3) Accounts receivable and accounts receivable – related parties

Accounts receivable Less: loss allowance Subtotal Accounts receivable from related parties Less: loss allowance Subtotal Total	As of December 31,	As of December 31,
	2019	2018
	$1,149,091 (60)	$1,070,118 (145)
	1,149,031	1,069,973
	220,763 -	75,549 -
	220,763	75,549
	$1,369,794	$1,145,522

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Accounts receivable were not pledged.

Please refer to Note 12. (11) for disclosure on information of accounts receivable transfer.

Trade receivables are generally on 5-255 day terms. The total carrying amount as of December 31, 2019 and 2018 are NT$1,369,854 thousand and NT$1,145,667 thousand, respectively. Please refer to Note 6.(17) for more details on loss allowance of trade receivables for the years ended December 31, 2019 and 2018. Please refer to Note 12 for more details on credit risk management.

(4) Other receivables, net

Other receivables Less: loss allowance Total	As of December 31,	As of December 31,
	2019	2018
	$150,155 -	$204,986 -
	$150,155	$204,986

Please refer to Note 6.(17) for more details on loss allowance of trade receivables for the years ended December 31, 2019 and 2018. Please refer to Note 12 for more details on credit risk management.

(5) Inventories, net

Raw materials Supplies Work in progress Finished goods Total	As of December 31,	As of December 31,
	2019	2018
	$629,008 43,062 192,231 2,768,797	$619,754 46,509 171,877 2,305,507
	$3,633,098	$3,143,647

The cost of inventories recognized in expenses amounted to NT$10,695,337 thousand and NT$10,811,575 thousand for the years ended December 31, 2019 and 2018, respectively, including:

36

Losses for market price decline of inventories Losses on physical inventory Loss on work stoppage Revenue from sale of scraps Additions (less) to operating costs	For theyears ended December 31	For theyears ended December 31
	2019	2018
	$161,327 - 29,995 (72,787)	$158,793 13 70,004 (85,380)
	$118,535	$143,430

No inventories were pledged.

(6) Financial assets at fair value through other comprehensive income

Debt instrument investments measured at fair value through other comprehensive income – non-current: Listed companies stocks Unlisted companies stocks Total	As of December 31,	As of December 31,
	2019	2018
	$210,970 46,697	$210,750 52,582
	$257,667	$263,332

Financial assets at fair value through other comprehensive income were not pledged.

(7) Investments accounted for using the equity method

Investees	As of December 31,	As of December 31,	As of December 31,	As of December 31,
	2019		2018
	Carrying amount	Percentage of Ownership	Carrying amount	Percentage of Ownership
Taiwan Glass USA Sales Corp. Taiwan Glass China Holding Ltd. Taiwan Autoglass Ind. Corp. TG Teco Vacuum Insulated Glass Corp. Hario TG Glass Corp. Total	$391,684 39,480,570 184,431 164,673 (Note)	100.00% 93.98% 87.00% 65.00%	$370,351 41,520,343 256,946 193,352 (Note)	100.00% 93.98% 87.00% 65.00%
	$40,221,358		$42,340,992

Note: The subsidiary has been liquidated in May 2018.

The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments on the parent company only financial statements.

No investment accounted for using the equity method was pledged.

37

(8) Property, plant and equipment

Cost: As of January 1, 2018 Additions Disposals Transfers Other changes As of December 31, 2018 Additions Disposals Transfers Other changes As of December 31, 2019 Depreciation and impairment: As of January 1, 2018 Depreciation Disposals Transfers Other changes As of December 31, 2018 Depreciation Disposals Transfers Other changes As of December 31, 2019 Net carrying amount as of: December 31, 2019 December 31, 2018	Land	Buildings	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress and equipment awaiting examination	Total
	$3,796,048 - - - -	$8,308,321 15,077 - 27,553 -	$21,704,982 77,551 (247,373) 509,239 4,597	$259,203 3,899 (1,894) 920 7,056	$380,467 8,799 (9,696) - -	$421,578 557,386 - (537,712) 471,215	$34,870,599 662,712 (258,963) - 482,868
	3,796,048 - - - -	8,350,951 21,268 - 75,594 -	22,048,996 72,645 (125,706) 1,213,092 5,641	269,184 77 (22,712) 2,856 22,750	379,570 8,499 (5,805) - -	912,467 725,449 - (1,291,542) 851,324	35,757,216 827,938 (154,223) - 879,715
	$3,796,048	$8,447,813	$23,214,668	$272,155	$382,264	$1,197,698	$37,310,646
	$- - - - -	$5,377,802 284,803 - - -	$13,898,705 865,343 (233,207) - -	$233,689 9,758 (1,874) - -	$231,323 28,324 (9,696) - -	$- - - - -	$19,741,519 1,188,228 (244,777) - -
	- - - - -	5,662,605 232,749 - - -	14,530,841 886,880 (122,629) - -	241,573 10,718 (22,712) - -	249,951 26,838 (5,805) - -	- - - - -	20,684,970 1,157,185 (151,146) - -
	$-	$5,895,354	$15,295,092	$229,579	$270,984	$-	$21,691,009
	$3,796,048	$2,552,459	$7,919,576	$42,576	$111,280	$1,197,698	$15,619,637
	$3,796,048	$2,688,346	$7,518,155	$27,611	$129,619	$912,467	$15,072,246

Capitalized borrowing costs of property, plant and equipment are as follows:

Item	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
Construction in progress Capitalization rate of borrowing costs	$18,966 1.425%~1.637%	$12,388 1.529%~1.748%

Components of machinery and equipment that have different useful lives are furnace and platinum, which are depreciated over 12 years and 20 years, respectively.

No property, plant and equipment was pledged.

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(9) Right-of-use assets

Cost: As of January 1, 2019 Additions Disposals Transfers Other changes As of December 31, 2019 Depreciation and impairment: As of January 1, 2019 Depreciation Disposals Transfers Other changes As of December 31, 2019 Net carrying amount as of: December 31, 2019 December 31, 2018(Note)	Land	Buildings	Machinery and equipment	Other equipment	Total
	$119,932 2,756 - - -	$21,127 4,347 (9,575) - -	$15,226 15,251 (15,226) - -	$27,020 23,697 (14,679) - -	$183,305 46,051 (39,480) - -
	$122,688	$15,899	$15,251	$36,038	$189,876
	$23,987 24,537 - - -	$7,704 4,579 (1,882) - -	$13,957 15,249 (15,226) - -	$17,138 9,058 (14,608) - -	$62,786 53,423 (31,716) - -
	$48,524	$10,401	$13,980	$11,588	$84,493
	$74,164	$5,498	$1,271	$24,450	$105,383

Note: The Company adopted IFRS 16 since January 1, 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

(10) Other non-current assets

Investment property Advance payments in equipment Intangible assets Overdue receivables Less: loss allowance Overdue receivables, net Refundable deposits Net	As of December 31,	As of December 31,
	2019	2018
	$17,926	$17,938
	18,056	-
	5,327	8,786
	772,210 (772,210)	772,210 (772,210)
	- 7,193	- 11,517
	$48,502	$38,241

No investment property was pledged.

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Investment properties held by the Company are not measured at fair value but for which the fair value is disclosed. The fair value measurements of the investment properties are categorized within Level 3. The fair value of investment properties is NT$173,677 thousand and NT$172,543 thousand, as of December 31, 2019 and 2018, respectively. The fair value has been determined based on valuations performed by an independent appraiser. The valuation method used is direct capitalized method and market approach, and the inputs used are as follows:

Direct capitalization method:

Income capitalization rate	As of December 31, 2019 2018 1.42%~2.24% 1.42%~2.24%	As of December 31, 2019 2018 1.42%~2.24% 1.42%~2.24%
		2018
		1.42%~2.24%

Amortization expense of intangible assets under the statement of comprehensive income:

Operating costs General and administrative expense Total	For theyears ended December 31, 2019 2018 $428 $428 3,830 2,963 $4,258 $3,391	For theyears ended December 31, 2019 2018 $428 $428 3,830 2,963 $4,258 $3,391
		2018
		$428 2,963
		$3,391

(11) Short-term loans

Unsecured bank loans Unsecured interest rates	As of December 31, 2019 2018 $2,000,000 $1,900,000 0.9%~1.31% 1%~1.34%	As of December 31, 2019 2018 $2,000,000 $1,900,000 0.9%~1.31% 1%~1.34%
		2018
		$1,900,000
		1%~1.34%

The Company’s unused short-term lines of credits amounted to NT$750,000 thousand and NT$300,000 thousand as of December 31, 2019 and 2018, respectively.

(12) Short-term bills payable

	As of December 31,	As of December 31,
	2019	2018
Short-term bills payable	$3,750,000	$3,300,000
Less: unamortized discount	(8,994)	(4,430)
Net	$3,741,006	$3,295,570
Interest rates	1.388%~1.568%	1.388%~1.400%

40

(13) Long-term loans

Details of long-term loans as of December 31, 2019 and 2018 are as follows:

Lenders	Terms	Credit Line	Interest Rate	As of December 31,	As of December 31,	Redemption
				2019	2018
Chang-Hwa Bank Hua-Nan Bank King’s Town Bank COTA Commercial Bank O-Bank KGI Bank Hua-Nan Bank Union Bank of Taiwan Far Eastern International Bank Bank of Kaohsiung Bank of PanShin Taichung Commercial Bank JihSun Bank Taiwan Cooperative Bank Shin Kong Commercial Bank The Export-Import Bank	2015.09.01- 2020.09.01 2015.12.23- 2022.12.29 2016.03.30- 2023.03.30 2016.09.05- 2019.09.05 2016.12.06- 2019.12.06 2017.01.05- 2019.01.05 2017.05.26- 2019.05.26 2017.09.07- 2019.03.07 2017.12.07- 2019.12.07 2017.12.14- 2019.12.14 2017.12.14- 2019.12.14 2017.12.20- 2020.12.20 2017.12.25- 2019.12.25 2018.06.25- 2021.06.25 2018.06.06- 2020.08.06 2018.08.01-	NTD1,200,000 NTD3,000,000 NTD1,100,000 NTD100,000 NTD1,000,000 NTD300,000 NTD1,000,000 NTD600,000 NTD500,000 NTD300,000 NTD200,000 NTD500,000 NTD300,000 NTD500,000 NTD300,000 NTD600,000	Floating interest rate ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	$200,000 1,800,000 700,000 - - - - - - - - 500,000 - 500,000 300,000 533,333	$400,000 2,400,000 900,000 24,940 1,000,000 $260,000 1,000,000 600,000 500,000 300,000 200,000 - 300,000 500,000 300,000 600,000	8 equal installments of the principal made every 6 months from the sixth year after borrowing date Repayable semiannually from June 23, 2018. Repayable semiannually from March 30, 2018 12 quarter installments of principal and interest from December 5, 2016 Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity 12 equal installments of principal and interest from July 25, 2020. Principal repaid at maturity 9 equal installments of

41

Lenders	Terms	Credit Line	Interest Rate	As of December 31,	As of December 31,	Redemption
				2019	2018
of the Republic of China EnTie Commercial Bank Shanghai Commercial & Savings Bank Taiwan Business Bank Chang Hwa Bank KGI Bank Bank of China Limited Union Bank of Taiwan Bank SinoPac Hua-Nan Bank Mega Bank JihSun Bank O-Bank Far Eastern International	2023.08.01 2018.08.20- 2020.08.20 2018.09.05- 2021.09.05 2018.10.18- 2025.10.18 2018.12.21- 2021.12.21 2019.01.04- 2021.01.04 2019.02.01- 2021.01.31 2019.03.07- 2020.09.07 2019.03.28- 2021.03.27 2019.05.27- 2021.05.27 2019.06.20- 2022.06.20 2019.08.09 2020.06.27 2019.11.15- 2022.11.15 2019.12.06-	NTD500,000 NTD200,000 NTD1,000,000 NTD500,000 NTD300,000 NTD400,000 NTD600,000 NTD500,000 NTD1,000,000 NTD300,000 NTD300,000 NTD1,000,000 NTD500,000	″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	500,000 200,000 1,000,000 500,000 300,000 400,000 600,000 500,000 1,000,000 300,000 300,000 1,000,000 500,000	500,000 200,000 $1,000,000 500,000 - - - - - - - - -	the principal made every 6 months from August 1, 2019. Principal repaid at maturity Principal repaid at maturity 11 equal installments of the principal made every 6 months from October 18, 2020. 4 equal installments of the principal made every 6 months from June 21, 2020. Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity Principal repaid at maturity The 12-month period following the drawdown is the first installment, and each of the three following months is deemed one installment. The credit limit is reduced by 30%, 30%, and 40%. 6 equal installments of the principal made every month from January 1, 2020. Principal repaid at maturity Principal repaid at

42

Lenders	Terms	Credit Line	Interest Rate	As of December 31,	As of December 31,	Redemption
				2019	2018
Bank 2021.12.06 Bank of Kaohsiung 2019.12.13- 2021.12.13 Bank of PanShin 2019.12.16- 2021.12.16 Subtotal Less: current portion of long-term loans Total		NTD300,000 NTD200,000	″ ″	300,000 200,000	- -	maturity Principal repaid at maturity Principal repaid at maturity
				12,133,333 (4,014,242)	11,484,940 (5,251,607)
				$8,119,091	$6,233,333

As of December 31, 2019 and 2018, part of long-term loans contained covenants that required the Company to maintain certain financial ratios such as (1) the current ratio, (2) the ratio of the total liabilities to the net tangible assets, (3) the ratio of EBITDA to interest expense and (4) the tangible assets net worth amount.

(14) Post-employment benefits

Defined contribution plan

The Company adopts a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company has made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Pension expenses under the defined contribution plan for the years ended December 31, 2019 and 2018 were NT$98,264 thousand and NT$94,371 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

43

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is managed in-house or under a mandate, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from twoyear time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT$54,233 thousand to its defined benefit plan during the 12 months beginning after December 31, 2019.

Apart from the above-mentioned pension funds, the Company has another fund managed by the pension fund management committee, and the plan is categorized as follows:

Investments with quoted prices in an active market Equity instruments－domestic Debt instruments－domestic Other	As of December31,	As of December31,
	2019	2018
	92% 8% 0%	96% 4% 0%

The durations of the defined benefits plan obligation as of December 31, 2019 and 2018 are 5 and 6 years, respectively.

Pension costs recognized in profit or loss for the years ended December 31, 2019 and 2018:

Current period service costs Interest income or expense Past service cost Payments from the plan Total	For theyears ended December31,	For theyears ended December31,
	2019	2018
	$35,036 3,223 - -	$39,054 284 - -
	$38,259	$39,338

Changes in the defined benefit obligation and fair value of plan assets are as follows:

Defined benefit obligation at January 1 Plan assets at fair value Other non-current liabilities - Accrued pension liabilities recognized on the balance sheets		As of
	December 31, 2019	December 31, 2018	January 1, 2018
	$2,027,676 (1,568,604)	$2,120,550 (1,707,285)	$2,084,920 (2,044,343)
	$459,072	$413,265	$40,577

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Reconciliation of liability (asset) of the defined benefit plan is as follows:

As of January 1, 2018 Current period service costs Net interest expense (income) Past service cost and gains and losses arising from settlements Subtotal Remeasurements of the net defined benefit liability (asset): Actuarial gains and losses arising from changes in demographic assumptions Actuarial gains and losses arising from changes in financial assumptions Experience adjustments Return on plan assets Subtotal Payments from the plan Contributions by employer Effect of changes in foreign exchange rates As of December 31, 2018 Current period service costs Net interest expense (income) Past service cost and gains and losses arising from settlements Subtotal Remeasurements of the net defined benefit liability (asset): Actuarial gains and losses arising from changes in demographic assumptions Actuarial gains and losses arising from changes in financial assumptions Experience adjustments Return on plan assets Subtotal Payments from the plan Contributions by employer Effect of changes in foreign exchange rates As of December 31, 2019	Defined benefit obligation	Fair value of plan assets	Benefit liability (asset)
	$2,084,920 39,054 14,594 -	$2,044,343 - 14,310 -	$40,577 39,054 284 -
	2,138,568 (946) (4,778) 77,904 -	2,058,653 - - - (318,124)	79,915 (946) (4,778) 77,904 318,124
	72,180	(318,124)	390,304
	(90,198) - -	(90,198) 56,954 -	- (56,954) -
	2,120,550 35,036 16,540 -	1,707,285 - 13,317 -	413,265 35,036 3,223 -
	2,172,126 399 4,131 29,302 -	1,720,602 - - - (30,138)	451,524 399 4,131 29,302 30,138
	33,832	(30,138)	63,970
	(178,282) - -	(178,282) 56,422 -	- (56,422) -
	$2,027,676	$1,568,604	$459,072

45

The following significant actuarial assumptions are used to determine the present value of the defined benefit obligation:

Discount rate Expected rate of salary increases	As of December 31,	As of December 31,
	2019	2018
	0.66% 1.00%	0.78% 1.00%

A sensitivity analysis for significant assumption as of December 31, 2019 and 2018 is as shown below:

Effect on the defined benefit obligation

Discount rate increase by 0.5% Discount rate decrease by 0.5% Future salary increase by 0.5% Future salary decrease by 0.5%	2019	2019	2018	2018
	Increase in defined benefit obligation	Decrease in defined benefit obligation	Increase in defined benefit obligation	Decrease in defined benefit obligation
	$- 119,720 118,430 -	$16,484 - - 16,508	$- 98,820 97,637 -	$27,753 - - 27,826

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(15) Equities

A. Common stock

The Company’s authorized capital were both NT$30,000,000 thousand as of December 31, 2019 and 2018. The Company’s issued capital were both NT$29,080,608 thousand as of December 31, 2019 and 2018, each at a par value of NT$10. The Company has issued both 2,908,061 thousand common shares as of December 31, 2019 and 2018. Each share has one voting right and a right to receive dividends.

46

B. Capital surplus

Additional paid-in capital Increase through changes in ownership interests in subsidiaries Expired employee stock warrants Gains on disposal of assets Total	As of December 31,	As of December 31,
	2019	2018
	$1,540,300 258,091 23,661 103,166	$1,540,300 258,091 23,661 103,166
	$1,925,218	$1,925,218

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its stockholders in proportion to the number of shares being held by each of them.

C. Rained earnings and dividend policies

According to the Company’s Articles of Incorporation, the Company’s annual earnings, if any, shall first set aside 1.5% as employee bonuses and no higher than 1.5% as directors and supervisor’s remunerations. Nevertheless, the Company shall first make up for losses if there are accumulated losses. The Company shall make distributions from its net income (less any deficit) in the following order:

• a. Offset an accumulated deficit.

• b. Set aside 10% as legal reserve.

• c. Set aside or reverse special reserve.

• d. Following distributions of items “a” to “c” indicated above, the remaining amount, if any, shall be proposed by the board of directors at a board meeting to be distributed as shareholders dividends and bonuses.

Based on the Company’s plan to achieve healthy financial standing, whether to distribute the beginning undistributed earnings should consider the actual operation of the year and the budget planning for the following year, to evaluate the necessity of providing funding via earnings distribution so as to determine the most appropriate dividend policy for sustainable business development. The said shareholders dividend and bonus distribution shall not be less than 50% of the distributable earnings after deducting the above items “a” to “c” from current net income. The Company’s Articles of Incorporation further provide that no more than 1% of the dividends to shareholders, if any, could be paid in the form of share dividends. At least 20% of the dividends must be paid in the form of cash.

47

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the stockholders.

Following the adoption of TIFRS, the FSC on April 6, 2012 issued Order No. FinancialSupervisory-Securities-Corporate-1010012865, which sets out the following provisions for compliance:

On a public company's first-time adoption of the TIFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside an equal amount of special reserve. Following a company’s adoption of the TIFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserve, from the profit/loss of the current period and the undistributed earnings from the previous period, an amount equal to “other net deductions from shareholders’ equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed. The special reserves booked from first-time adoption of International Financial Reporting Standards were both NT$3,232,749 thousand as of December 31, 2019 and 2018, respectively. The Company did not reverse special reserve to retained earnings for using, disposing of or reclassifying relevant assets in 2019 and 2018.

Details of the 2019 and 2018 earnings distribution and dividends per share as approved by Board of Directors’ meeting on March 16, 2020 and by the stockholders’ meeting on June 19, 2019, respectively, are as follows:

Legal reserve Common stock -cash dividend Common stock-stock dividend	Appropriation of earnings	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2019	2018	2019	2018
	$- - -	$106,629 872,418 -	$- - -	$- 0.3 -

Please refer to Note 6. (20) for further details on employees’ compensation and remuneration to directors.

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(16) Operating revenue

Sale of goods	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$11,702,108	$12,561,584

Analysis of revenue from contracts with customers during the periods ended December 31, 2019 and 2018 are as follows:

A. Disaggregation of revenue

2019 Sale of goods 2018 Sale of goods	Flatglass	Container	Fiberglass	Other	Total
	$3,883,966	$3,453,165	$4,213,911	$151,066	$11,702,108
	$4,038,056	$3,467,797	$4,890,268	$165,463	$12,561,584

The timing of revenue recognition was at a point in time.

B. Contract balances

Contract liabilities - current

Sales of goods	December 31, 2019 $415,347	December 31, 2018 $722,780	January 1, 2018
			$911,132

The significant changes in the Company’s balances of contract liabilities for the years ended December 31, 2019 and 2018 are as follows:

The opening balance transferred to revenue Increase in receipts in advance during the period (excluding the amount incurred and transferred to revenue during the period)	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$722,780 415,347	$911,132 722,780

C. Assets recognized from costs to obtain or fulfil a contract: None.

(17) Expected credit losses/ (gains)

Operating expenses – Expected credit losses/(gains) Accounts receivables	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$85	$292

Please refer to Note 12 for more details on credit risk.

49

The Company measures the loss allowance of its contract assets and accounts receivables (including note receivables, accounts receivables, other receivables and overdue receivables) at an amount equal to lifetime expected credit losses. The assessment of the Company’s loss allowance as of December 31, 2019 and 2018 is as follows:

The Company considered the grouping of accounts receivables by counterparties’ credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix, details are as follows:

As of December 31, 2019

Group 1 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Group 2 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Group 3 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Carrying amount	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$- 0%	$- 0%	$- 0%	$772,210 100%	$772,210 (772,210)
	-	-	-	(772,210)
	-	-	-	-	-
	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$1,143,063 0%	$6,028 1%	$- 0%	$- 0%	$1,149,091 (60)
	-	(60)	-	-
	1,143,063	5,968	-	-	1,149,031
	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$509,027 0%	$- 0%	$- 0%	$- 0%	$509,027 -
	-	-	-	-
	509,027	-	-	-	509,027
					$1,658,058

50

As of December 31, 2018

Group 1 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Group 2 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Group 3 Total carrying amount Loss ratio Lifetime expected credit losses Subtotal Carrying amount	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$- 0%	$- 0%	$- 0%	$772,210 100%	$772,210 (772,210)
	-	-	-	(772,210)
	-	-	-	-	-
	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$1,055,590 0%	$14,528 1%	$- 0%	$- 0%	$1,070,118 (145)
	-	(145)	-	-
	1,055,590	14,383	-	-	1,069,973
	Notyet due		Overdue		Total
		31-90 days	91-365 days	>=366 days
	$447,912 0%	$- 0%	$- 0%	$- 0%	$447,912 -
	-	-	-	-
	447,912	-	-	-	447,912
					$1,517,885

Group 1: The Company has exercised recourse against the individual assessment of accounts receivables, other receivables and overdue receivables.

Group 2: The Company's accounts receivables are overdue but not for more than one year.

• Group 3: The Company's notes receivables, accounts receivables- related parties and other receivables are not yet due.

51

The movement in the provision for impairment of note receivables, accounts receivables, other receivables and overdue receivables during 2019 and 2018 was as follows:

As of January 1, 2019 Reversalfor the current period Write off As of December 31, 2019 As of January 1, 2018 Reversalfor the current period Write off As of December 31, 2018	Notes receivables	Accounts receivables	Other receivables	Overdue receivables
	$- - -	$145 (85) -	$- - -	$772,210 - -
	$-	$60	$-	$772,210
	$- - -	$437 (292) -	$- - -	$793,103 - (20,893)
	$-	$145	$-	$772,210

(18) Net amount of other revenues and gains and expenses and losses

Gains on disposal of property, plant, and equipment	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$2,957	$25,417

(19) Leases

A. Company as a lessee (applicable to the disclosure requirement under IFRS 16)

The Company has entered into commercial leases on certain offices and plants. These leases have an average life of three to five years with no renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases.

The Company’s leases effect on the financial position, financial performance and cash flows are as follows:

1. Amounts recognized in the balance sheet

i. Right-of-use assets

The carrying amount of right-of-use assets

Land Buildings Machinery and equipment Other equipment Total	As at December 31,	As at December 31,
	2019 $74,164 5,498 1,271 24,450 $105,383	2018(Note)

52

• Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

During the years period ended December 31, 2019, the Company’s additions to right-ofuse assets amounting to NT$46,051 thousand.

ii. Lease liabilities

Current Non-current Lease liabilities	As at December 31,	As at December 31,
	2019 $37,051 65,302 $102,353	2018(Note)

Please refer to Note 6.(21)(c) for the interest on lease liabilities recognized during the years ended December 31, 2019 and refer to Note 12.(5) Liquidity Risk Management for the maturity analysis for lease liabilities as of December 31, 2019.

Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

1. Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

Land Buildings Machinery and equipment Other equipment Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018(Note)
	$24,537 4,579 15,249 9,058
	$53,423

• Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

• Income and costs relating to leasing activities

The expenses relating to short-term leases The expenses relating to leases of low-value assets (Not including the expenses relating to short-term leases of low-value assets)	For theyears ended	December31,
	2019	2018(Note)
	$9,227 2,834

Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

53

1. Cash outflow relating to leasing activities

During the year period ended 31 December 2019, the Company’s total cash outflows for leases amounting to NT$67,953 thousand.

• B. Operating lease commitments - Company as a lessee (applicable to the disclosure requirement in IAS 17)

The Company has entered into commercial leases on certain offices and plants. These leases have an average life of three to five years with no renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases.

Future minimum rentals payable under non-cancellable operating leases as of December 31, 2019 and 2018 were as follows:

Not later than one year Later than one year and not later than five years Total Operating lease expenses recognized were as follows: Minimum lease payments	As of December 31,	As of December 31,
	2019(Note)	2018
		$26,611 74,286
		$100,897
	2019(Note)	2018
		$38,888

• Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

• (20) Summary statement of employee benefits, depreciation and amortization expenses by function:

For the years ended December 31,

Employee benefits expense Salaries Labor and health insurance Pension Directors’ remuneration Other employee benefits expense Depreciation(Note) Amortization		2019			2018
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
	$2,264,587 266,850 101,131 - 93,364 1,176,973 428	$324,345 17,676 35,392 7,922 13,339 33,647 3,830	$2,588,932 284,526 136,523 7,922 106,703 1,210,620 4,258	$2,325,641 258,169 99,871 - 93,828 1,163,360 428	$349,436 17,150 33,838 25,199 14,360 24,869 2,963	$2,675,077 275,319 133,709 25,199 108,188 1,188,429 3,391

54

The number of employees as of December 31, 2019 and 2018 was 4,669 and 4,729, including 7 non-employee directors, respectively.

According to the Company’s Articles of Incorporation, when there is profit of the current year, the Company shall distribute 1.5% of profit of the current year as employees’ compensation and no higher than 1.5% of profit of the current year as remuneration to directors. However, the Company's accumulated losses shall have been covered. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the TWSE.

Based on the profit for the current year, the Company did not estimate the amounts of the employees’ compensation and remuneration to directors for the year ended December 31, 2019. As such, employees’ compensation and remuneration to directors for the year ended December 31, 2018 amounted to both NT$17,194 thousand, recognized as salaries expense.

A resolution was approved at the board meeting held on March 18, 2019 to distribute NT$17,194 thousand in cash as employees’ compensation and remuneration to directors of 2018. No material differences existed between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the year ended December 31, 2018.

For the year ended December 31, 2019 and 2018, the average employee benefits expense amounted to NT$669 thousand and NT$676 thousand; the average salaries amounted to NT$555 thousand and NT$567 thousand. The adjustment of the average salaries is (1.97)%.

(21) Non-operating income and expenses

A. Other income

Interest income Financial assets measured at amortized cost Rental income Dividend income Others Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$1,624 32,931 7,493 182,325	$2,594 37,229 13,998 172,445
	$224,373	$226,266

B. Other gains and losses

Foreign exchange (losses) gains, net Loss on disposal of investment Others Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$(21,159) - (77,749)	$57,321 (86) (71,345)
	$(98,908)	$(14,110)

55

C. Finance costs

Interest on borrowings from bank Interest on borrowings from intercompany Interest on lease liabilities Interest on factoring of accounts receivable Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$260,574 5,014 1,610 3,077	$237,236 - (Note) 3,971
	$270,275	$241,207

Note: The Company adopted IFRS 16 since 1 January 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

(22) Components of other comprehensive income

Year ended December 31, 2019

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized losses from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method Total	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$(63,970) (5,665) (701) (1,705,017)	$- - - -	$(63,970) (5,665) (701) (1,705,017)	$12,794 - - -	$(51,176) (5,665) (701) (1,705,017)
	$(1,775,353)	$-	$(1,775,353)	$12,794	$(1,762,559)

56

For the year ended December 31, 2018

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized losses from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method Total	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$(390,304) (900) (3,358) (932,623)	- - - -	$(390,304) (900) (3,358) (932,623)	$101,650 - - -	$(288,654) (900) (3,358) (932,623)
	$(1,327,185)	$-	$(1,327,185)	$101,650	$(1,225,535)

(23) Income tax

Based on the amendments to the Income Tax Act announced on February 7, 2018, the Company’s applicable corporate income tax rate for the year ended December 31, 2018 has changed from 17% to 20%. The corporate income surtax on undistributed retained earnings has changed from 10% to 5%.

The major components of income tax expense (benefit) are as follows:

Income tax expense (benefit) recognized in profit or loss

Current income tax expense (benefit): Current income tax charge Adjustments in respect of current income tax of prior periods Deferred tax expense (benefit): Deferred tax expense (benefit) relating to origination and reversal of temporary differences Deferred income tax related to changes in tax rates Total income tax (benefit) expense	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$11,094 - (30,651) -	$68,866 1,662 (25,852) 937
	$(19,557)	$45,613

57

Income tax relating to components of other comprehensive income

Deferred tax benefit: Deferred income tax related to changes in tax rates Remeasurements of defined benefit plans Total	For theyears ended December 31	For theyears ended December 31
	2019	2018
	$- (12,794)	$(23,589) (78,061)
	$(12,794)	$(101,650)

Reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

Accounting profit before tax from continuing operations Tax at the domestic rates applicable to profits in the country concerned Net investment income accounted for using the equity method Tax effect of revenues exempt from taxation Tax effect of expenses not deductible for tax purposes Non-deductible offshore tax Corporate income surtax on undistributed retained earnings Tax effect of deferred tax assets/liabilities Adjustments in respect of current income tax of prior periods Deferred income tax related to changes in tax rates Total income tax expense recognized in profit or loss	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$(1,468,007)	$1,111,899
	(293,601) 80,196 (1,474) 12,439 11,094 - 171,789 - -	222,380 (276,696) (2,728) 2,434 5,242 63,624 28,758 1,662 937
	$(19,557)	$45,613

58

Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2019

Temporary differences Depreciation difference for tax purpose Prepaid pension cost difference Employee benefits Unrealized loss due to market price decline of inventories Capitalization of interest Provisions of employee benefit obligations Unrealized gain on foreign exchange Others Land value increment tax Deferred tax (expense)/income Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January1,2019	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance as of December 31, 2019
	$(67,760) 82,653 4,211 230,052 4,318 22,038 (22,242) 1,656 (204,145)	$1,682 (3,632) (2,120) 32,266 (1,201) 795 4,294 (1,433) -	$- 12,794 - - - - - - -	$(66,078) 91,815 2,091 262,318 3,117 22,833 (17,948) 223 (204,145)
	$50,781	$30,651	$12,794	$94,226
	$344,928			$382,396
	$(294,147)			$(288,170)

For the year ended December 31, 2018

Temporary differences Depreciation difference for tax purpose Loss allowance Prepaid pension cost difference Employee benefits Unrealized loss due to market price decline of inventories Capitalization of interest Provisions of employee benefit obligations Unrealized gain on foreign exchange Others Land value increment tax Deferred tax (expense)/income Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January1,2018	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance as of December 31, 2018
	$(60,627) 929 6,898 5,381 168,549 4,691 16,591 (15,881) 1,830 (204,145)	$(7,133) (929) (25,895) (1,170) 61,503 (373) 5,447 (6,361) (174) -	$- - 101,650 - - - - - - -	$(67,760) - 82,653 4,211 230,052 4,318 22,038 (22,242) 1,656 (204,145)
	$(75,784)	$24,915	$101,650	$50,781
	$204,869			$344,928
	$(280,653)			$(294,147)

59

Unrecognized deferred tax assets

As of December 31, 2019 and 2018, deferred tax assets that have not been recognized as they may not be used to offset taxable profits amount to NT$491,648 thousand and NT$252,621 thousand, respectively.

Unrecognized deferred tax liabilities relating to the investment in subsidiaries

The Company did not recognize any deferred tax liability for taxes that would be payable on the unremitted earnings of the Company’s overseas subsidiaries, as The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future. As of December 31, 2019 and 2018, the taxable temporary differences associated with investment in subsidiaries, for which deferred tax liability has not been recognized, aggregated to NT$3,255,307 thousand and NT$2,341,393 thousand, respectively.

The assessment of income tax returns

As of December 31, 2019, the assessment of the income tax returns of the Company is to 2017.

(24) Earnings per share

Basic earnings per share amounts are calculated by dividing net (loss) profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net (loss) profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousands) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Basic earnings per share (NT$)	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$(1,448,450)	$1,066,286
	2,908,061	2,908,061
	$(0.50)	$0.37

60

Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousands) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Effect of dilution: Employees’ compensation Weighted average number of ordinary shares outstanding after dilution (in thousands) Diluted earnings per share (NT$)	For theyears ended December 31,	For theyears ended December 31,
	2019(Note)	2018
		$1,066,286
		2,908,061 1,333
		2,909,394
		$0.37

Note ： There were not potential ordinary shares as of year ended December 31, 2019, hence not necessary to calculate diluted earnings per share.

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements.

• (25) Changes in parent’s interest in subsidiaries

Acquisition of new shares in a subsidiary not in proportionate to ownership interest

During the years ended December 31, 2018, the Company paid additional cash to acquire TGCH’s new shares issued in the amount of UD$46,782 thousand (NT$1,434,797 thousand), and consequently the ownership interest in TGCH was increased to 93.98%. The difference between the cash paid and the decrease in the non-controlling interests was NT$221 thousand, and was recognized in equity.

7. Related party transactions

The significant transactions for 2019 and 2018 are summarized below:

Name and relationship of related parties

Name of relatedparties Taiwan Autoglass Ind. Corp. (TAG) TG Teco Vacuum Insulated Glass Corp. (TVIG) Hario TG Glass Corp. (HTG) (Note) Taiwan Glass USA Sales Corp. (TGUS) Taiwan Glass China Holding Ltd. (TGCH) TG Qingdao Glass Co., Ltd. (QFG) TG Changjiang Glass Co., Ltd. (CFG) TG Donghai Glass Co., Ltd. (DHG) TG Chengdu Glass Co., Ltd. (CDG) TG Huanan Glass Co., Ltd. (HNG)	Relationshipwith the Company
	Subsidiaries ″ ″ ″ ″ ″ ″ ″ ″ ″

61

Name of relatedparties TG Tianjin Glass Co., Ltd. (TJG) TG Fujian Photovoltaic Glass Co., Ltd. (FPG) Taichia Glass Fiber Co., Ltd. (TGF) TG Fengyang Silica Sand Co., Ltd. (FYSS) TG Xianyang Glass Co., Ltd. (TXY) TG Taicang Architectural Glass Co., Ltd. (TTAR) TG Yueda Autoglass Co., Ltd. (TYAU) TG Anhui Glass Co., Ltd. (TAH) TG Wuhan Architectural Glass Co., Ltd. (TWAR) TG Yueda Solar Glass Co., Ltd. (TYSM) Taichia Chengdu Glass Fiber Co., Ltd. (TCD) Taichia Bengbu Glass Fiber Co., Ltd. (TBF) Shihlien Chemical Industrial (Jiangsu) Co., Ltd. (SCJ) Tai Fong Investment Co., Ltd. Tai Cheng Investment Co., Ltd. Tai Yu Investment Co., Ltd. HO-HO Investment Co., Ltd. Tai Fong Golf Club Shihlien International Investment Co., Ltd. Shihlien Fine Chemical Co., Ltd. TECO Nanotech Co., Ltd. TECO Electric & Machinery Co., Ltd. Information Technology Total Services Corp. Xue Xue Institute Xue Xue Foundation Tes Solutions Co., Ltd. Kah Hung Corp. HARIO Co., Ltd. (Note)

Relationshipwith the Company

Subsidiaries ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ Associate Other related parties ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″

Note: Since May 31, 2018, it was not the Company’s related party.

Significant transactions with related parties

(1) Sales

For the years ended December 31,

Subsidiaries Associate Other related parties Total	2019	2018
	$686,365 83 6,106	$635,003 - 2,010
	$692,554	$637,013

The sales price to the above related parties was determined through mutual agreement based on the market rates. The collection period for related parties was month-end 90 days. The outstanding balance at December 31, 2019 and 2018 was unsecured, non-interest bearing and must be settled in cash. The receivables from the related parties were not guaranteed.

62

(2) Purchases

Subsidiaries Associate Other related parties Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$33,551 6,790 395	$94,830 7,074 304
	$40,736	$102,208

The purchase price to the above related parties was determined through mutual agreement based on the market rates. The payment terms from the related party suppliers are comparable with third party suppliers and are paid on delivery.

(3) Lease

Rental expense

Subsidiaries Other related parties Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018(Note)
	$- 134	$15,360 25,575
	$134	$40,935

The Company has leased offices and land for the year ended December 31, 2019.

The Company has leased offices, plant, warehouse land and equipments for the year ended December 31, 2018. The rents were based on local market price and prepaid for 1 year.

Rental income

Subsidiaries	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$23,698	$28,391

The rental income is due to a lease of plant and warehouse and the rent was based on local market price.

Other receivables

Subsidiaries

As of December 31,	As of December 31,
2019	2018
$9,273	$-

63

Other payables

Subsidiaries Other related parties Total Unearned rent	As of December 31,	As of December 31,
	2019	2018
	$8,064 422	$4,671 394
	$8,486	$5,065

Subsidiaries Right-of-use asset

For theyears ended December 31,	For theyears ended December 31,
2019	2018
$-	$305

Subsidiaries Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$1,271 74,954	(Note)
	$76,225

Current lease liabilities

Subsidiaries Other related parties Total

As of December 31,	As of December 31,
2019	2018
$1,280 25,804	(Note)
$27,084

Non-current lease liabilities

Other related parties Interest expense

As of December 31,	As of December 31,
2019	2018
$50,338	(Note)

Subsidiaries Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$111 1,252	(Note)
	$1,363

Note: The Company adopted IFRS 16 since January 1, 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

64

(4) Other income (Guarantee income and technical service etc.)

Subsidiaries Taichia Bengbu Glass Fiber Co., Ltd. (TBF) Other Subtotal Associate Other related parties Total	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$22,548 89,484	$11,478 92,024
	112,032 619 5,902	103,502 890 5,968
	$118,553	$110,360

(5) Accounts receivable

Subsidiaries Other related parties Total Less: loss allowance Net	As of December 31,	As of December 31,
	2019	2018
	$217,547 3,216	$75,515 34
	220,763 -	75,549 -
	$220,763	$75,549

(6) Other receivables (Guarantee fee and technical service fee)

Subsidiaries TCD TGF TBF CFG Others Subtotal Associate Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$37,872 17,501 3,534 935 22,879	$37,278 25,182 24,550 22,064 64,571
	82,721	173,645
	601 20	915 12
	$83,342	$174,572

(7) Accounts payable

Subsidiaries Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$1,790 -	$1,201 86
	$1,790	$1,287

65

(8) Contract liabilities-Current

Subsidiaries TYAU Others Subtotal Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$- 20	$245,814 44
	20 2,065	245,858 -
	$2,085	$245,858

(9) Other payables

A. Entertainment and exhibition fee

Subsidiaries Other related parties Total	As of December 31,	As of December 31,
	2019	2018
	$804 1,075	$178 1,958
	$1,879	$2,136

B. Financing

Tai Fong Investment Co., Ltd. Ho Ho Investment Co., Ltd. Tai Yu Investment Co., Ltd.	For theyear ended December 31,	For theyear ended December 31,	For theyear ended December 31,	2019
	Maximum balance	Ending balance	rate	Interest expense	Interest payables
	$200,000 880,000 500,000	$200,000 880,000 500,000	3% 3% 3%	$1,606 3,255 153	$1,751 3,541 164
		$1,580,000		$5,014	$5,456

Note: Interest expense including capitalized interest was NT$442 thousand.

None as of December 31, 2018.

(10) Others

The Company’s other transactions with subsidiaries and other related parties is as follows:

Other current assets Subsidiaries Other current liabilities Subsidiaries	As of December 31,	As of December 31,
	2019	2018
	$-	$3
	2019	2018
	$43	$-

66

Operating expenses Subsidiaries Other related parties Total Other expenses Subsidiaries	For theyears ended December 31,	For theyears ended December 31,
	2019	2018
	$- 3,191	$172 6,328
	$3,191	$6,500
	2019	2018
	$1	$-

• (11) The payment term to related parties has no significant difference to other third parties. The outstanding balance at December 31, 2019 and 2018 was unsecured, non-interest bearing and must be settled in cash. The receivables from and the payables to the related parties were not guaranteed.

• (12) The Company purchased intangible assets and construction in progress from the other related parties in the amount of NT$1,632 thousand in 2018.

• (13)The Company sold property, plant and equipment to the subsidiaries in the amount of NT$23,977 thousand and recognized unrealized gain in the amount of NT$6,642 thousand in 2018.

• (14)The Company purchased the right-of-use assets from other related parties in the amount of NT$4,347 thousand in 2019.

• (15)The Company derecognized right-of-use assets and lease liabilities from other related parties and recognized profit on disposal of right-of-use assets was NT$33 thousand for the year ended December 31, 2019.

(16) Key management personnel compensation

For the years ended December 31,

Short-term employee benefits Post-employment benefits Total	2019	2018
	$32,818 1,943	$50,891 1,952
	$34,761	$52,843

8. Assets pledged as security

Assetspledged for security	December 31. 2019	December 31,2018	Obligee	Secured liabilities
Bank savings (other financial assets - current)	$300	$-	Mizuho Bank	Performance bond

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9. Commitments and contingencies

As of December 31, 2019, the contingency and off balance sheet commitments are as follows:

• (1) As of December 31, 2019, the outstanding promissory notes signed for business needs, including importing equipment, purchase of equipment, performance bond, and loan guarantee, totaled NT$17,144,990 thousand.

• (2) Commodity tax and export tariff were NT$21,213 thousand.

• (3) Unsecured balance of letters of credit is as follows:

Currency USD JPY EUR SEK RMB	Unused Balance(in thousands)
	4,432 75,401 489 967 27,718

• (4) Significant contracts of construction in progress and equipment are as follows:

Items	Contract amount	Amountpaid	Amount unpaid
Significant contracts of construction in progress and equipment	$632,330	$448,015	$184,315

The above amount paid was recognized as construction in progress under property, plant and equipment and prepayment for equipment under noncurrent assets.

• (5) The Company signed the promissory notes in amount of NT$950,000 thousand, US$333,000 thousand and RMB494,000 thousand for its subsidiaries’ secured loans.

• Losses due to major disasters

None.

11. Significant subsequent events

On March 16, 2020, the board of directors of the company approved the proposal for the Subsidiary, Taiwan Glass China Holdings Co., Ltd., to reduce capital in the amount of US$ 80,000 and repatriate the share capital.

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12. Others

Financial Instruments

(1) Categories of financial instruments

Financial assets Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents (excluding cash on hand) Receivables Refundable deposits Subtotal Total Financial liabilities Financial liabilities at amortized cost: Short-term loans Short-term bills payable Payables Long-term loans (including current portion) Lease liabilities Deposits-in Total	As of December 31,	As of December 31,
	2019	2018
	$257,667 507,000 1,658,058 7,192	$263,332 584,141 1,517,885 11,517
	2,172,250	2,113,543
	$2,429,917	$2,376,875
	2019	2018
	$2,000,000 3,741,006 3,601,172 12,133,333 102,353 759	$1,900,000 3,295,570 1,508,398 11,484,940 (Note) 791
	$21,578,623	$18,189,699

Note: The Company adopted IFRS 16 since January 1, 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.

(2) Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies, measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

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• (3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and equity risk.

In practice, it is rarely the case that a single risk variable changes independently from other risk variables, there are usually interdependencies between risk variables. The sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency).

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company’s foreign currency risk is mainly related to the volatility in the exchange rates for US dollars. The information of the sensitivity analysis is as follows:

When NTD weakens/strengthens against US dollars by 1%, the profit for the years ended of December 31, 2019 and 2018 is decreased/increased by NT$9,632 thousand and NT$7,782 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt instrument investments and receivables at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2019 and 2018 to be decreased/increased by NT$9,840 thousand and NT$8,510 thousand, respectively.

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Equity price risk

The fair value of the Company’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed and unlisted equity securities are classified under financial assets measured at fair value through other comprehensive income. The Company manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

The amount of the investment in the unlisted equity securities is not significant. Therefore, a change in the overall earnings stream of the valuations performed on the invested company would not have a significant impact on the income nor equity attributable to the Company for the years ended December 31, 2019 and 2018.

As of December 31, 2019, a change of 10% in the price of the listed equity securities measured at fair value through profit or loss could increase/decrease the Company’s profit by NT$21,097 thousand.

As of December 31, 2018, a change of 10% in the price of the listed equity securities measured at fair value through profit or loss could increase/decrease the Company’s profit by NT$21,075 thousand.

(4) Credit risk management

Credit risk is the risk that a counter party will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

Customer credit risk is managed by each business unit subject to The Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain customer’s credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

As of December 31, 2019 and 2018, accounts receivables from top ten customers represented amounts less than 10% of the total accounts receivables of the Company. The credit concentration risk of accounts receivables is insignificant.

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Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating and with no significant default risk. Consequently, there is no significant credit risk for these counter parties.

The Company adopted IFRS 9 to assess the expected credit losses. Except for trade receivables, the remaining debt instrument investments which are not measured at fair value through profit or loss, low credit risk for these investments is a prerequisite upon acquisition and by using their credit risk as a basis for the distinction of categories.

The Company makes an assessment at each reporting date as to whether the debt instrument investments are still considered low credit risk, and then further determines the method of measuring the loss allowance and the loss rates. The details of the assessment for the credit risk of the Company are described as follows:

			Total carrying amount as at
		Measurement method for	As at December 31,
Level of credit risk	Indicator	expected credit losses	2019	2018
	Other impaired
Credit-impaired		Lifetime expected credit losses	$772,210	$772,210
	evidence
Simplified approach (Note)	(Note)	Lifetime expected credit losses	$1,658,118	$1,518,030

Note: By using simplified approach (loss allowance is measured at lifetime expected credit losses), including accounts and notes receivables and other receivables.

Financial assets are written off when there is no realistic prospect of future recovery (the issuer or the debtor is in financial difficulties or bankruptcy).

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments and bank borrowings. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

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Non-derivative financial liabilities

As of December 31, 2019 Short-term loans Short-term bills payable Payables Lease liabilities Long-term loans As of December 31, 2018 Short-term loans Short-term bills payable Payables Long-term loans	Less than 1year	2 to 3years	4 to 5years	> 5years	Total
	$2,005,834 3,750,000 3,601,172 36,235 4,178,673 $1,904,589 3,300,000 1,508,398 5,427,836	$- - - 61,259 7,466,559 $- - - 4,501,206	$- - - 6,620 606,846 $- - - 1,568,170	$- - - - 184,911 $- - - 370,115	$2,005,834 3,750,000 3,601,172 104,114 12,436,989 $1,904,589 3,300,000 1,508,398 11,867,327

As of December 31, 2019, there was liquidity risk that the Company’s current liability exceeded current asset. However, the Company has scheduled other financing plans as well as to approve the proposal for the Subsidiary, Taiwan Glass China Holdings Co., Ltd., to reduct the capital in the amount of US$ 80,000 and repatriate the share capital to mitigate the risk. The Company’s management considers that the measures mentioned above could reduce the liquidity risk as of December 31, 2019 significantly.

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended December 31, 2019:

As of January 1, 2019 Cash flows Non-cash changes: As of December 31, 2019	Short-term loans	Short-term bills payable	Long-term loans	Lease liabilities	Total liabilities from financing activities
	$1,900,000 100,000 -	$3,300,000 450,000 -	$11,484,940 648,393 -	$118,371 (55,892) 39,874	$16,803,311 1,142,501 39,874
	$2,000,000	$3,750,000	$12,133,333	$102,353	$17,985,686

Reconciliation of liabilities for the year ended December 31, 2018:

As of January 1, 2018 Cash flows As of December 31, 2018	Short-term loans	Short-term bills payable	Long-term loans	Lease payable	Total liabilities from financing activities
	$300,000 1,600,000	$2,200,000 1,100,000	$10,958,300 526,640	$- -	$13,458,300 3,226,640
	$1,900,000	$3,300,000	$11,484,940	$-	$16,684,940

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(7) Fair values of financial instruments

• A. The methods and assumptions applied in determining the fair value of financial instruments:

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

• a. The carrying amount of cash and cash equivalents, receivables, payables, refundable deposit and deposits-in approximate their fair value.

• b. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and bonds) at the reporting date.

• c. Fair value of equity instruments without market quotations (including unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as recent fund raising activities, valuation of similar companies, individual company’s development, market conditions and other economic indicators.

• d. The fair value of derivatives which are not options and without market quotations, is determined based on the counterparty prices or discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using the counterparty prices or appropriate option pricing model (for example, Black-Scholes model) or other valuation method (for example, Monte Carlo Simulation).

• B. Fair value of financial instruments measured at amortized cost

The carrying amount of the Company’s financial instruments measured at amortized cost approximate their fair value.

• C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12. (8) for fair value measurement hierarchy for financial instruments of the Company.

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(8) Assets measured at fair value

A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

• B. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows:

As of December 31, 2019

Financial assets: Financial assets at fair value through other comprehensive income Equity securities As of December 31, 2018 Financial assets: Financial assets at fair value through other comprehensive income	Level 1	Level 2	Level 3	Total
	$210,970 Level 1	$- Level 2	$46,697 Level 3	$257,667 Total
	$210,750	$-	$52,582	$263,332

As of December 31, 2018

During the years ended December 31, 2019 and 2018, there were no transfers between Level 1 and Level 2 fair value measurements.

75

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy is as follows:

Reconciliation for fair value measurements in Level 3 of ollows:	the fair value hierarchy is as
Beginning balances as of January 1, 2018 Total gains and losses recognized for the year ended December 31, 2018: Amount recognized in profit or loss Amount recognized in OCI Ending balances as of December 31, 2018 Total gains and losses recognized for the year ended December 31, 2019: Amount recognized in profit or loss Amount recognized in OCI Ending balances as of December 31, 2019	Assets
	At fair value through other comprehensive income
	Stocks
	$44,159 - 8,423
	52,582 - (5,885)
	$46,697

Total gains and losses recognized for the years ended December 31, 2019 and 2018 contained gains and losses related to such assets on hand as of December 31, 2019 and 2018 in the amount of NT$(5,885) thousand and NT$8,423 thousand, respectively.

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of December 31, 2019

Financial assets at fair value through other comprehensive income Stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
	Market approach	Discount for lack of marketability	-	The higher the discount for lack of marketability, the lower the fair value of the stocks	1% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Company’s equity by NT$467 thousand

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As of December 31, 2018

Financial assets at fair value through other comprehensive income Stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
	Market approach	Discount for lack of marketability	-	The higher the discount for lack of marketability, the lower the fair value of the stocks	1% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Company’s equity by NT$526 thousand

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Company is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies at each reporting date.

• C. Fair value measurement hierarchy of the Company’s assets and liabilities not measured at fair value but for which the fair value is disclosed

As of December 31, 2019

Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6.(10)) $- $- $173,677 $173,677

As of December 31, 2018

Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6.(10)) $- $- $172,543 $172,543

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(9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

(in thousands)

Financial assets			As of	As of	As of
	December 31,		2019	December 31,		2018
	Foreign currencies	Foreign exchange rate	NTD	Foreign currencies	Foreign exchange rate	NTD
	$32,146 13,065	29.98 29.98	$963,731 391,684	25,342 12,058	30.715 30.715	778,383 370,351
Monetary items: USD Non-Monetary items: USD

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

Since there were various functional currencies used, the Company was unable to disclose foreign exchange gains (losses) towards each foreign currency with significant impact. The realized and unrealized foreign exchange (losses) gains was NT$(21,159) thousand and NT$57,321 thousand for the years ended December 31, 2019 and 2018, respectively.

(10) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize stockholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, The Company may adjust dividend payment to stockholders, return capital to stockholders or issue new shares.

(11) Information of finance assets transfer

Transferred financial assets that are partially-derecognized in their entirety

The Company entered into a factoring agreement with a financial institution, which is partly with recourse and partly non-recourse. The Company has transferred the right on those nonrecourse factoring, and in accordance with the contract, the Company shall not be liable for the credit risks associated with uncollectable receivables (except for commercial disputes), which met the requirements for derecognizing financial assets. The related information is as follows:

78

As of December 31, 2019:

Transferee	Amount transferred	Amount	Advanced amount	Interest rate range	Credit
	$320,661	$288,595	$288,529	1.08% Interest rate range	$605,000
		Amount	Advanced amount		Credit
Transferee
O-Bank	$438,775	$394,898	$397,010	1.07%~1.08%	$800,000

13. Other disclosure

(1) Information at significant transactions

• A. Lending fund to others: Please refer to Attachment 1.

• B. Endorsement/guarantee provided to others: Please refer to Attachment 2.

• C. Securities held at the end of the period: Please refer to Attachment 3.

• D. Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20 percent of the capital stock or more: Please refer to Attachment 4.

• E. Acquisition of real estate with amount exceeding NT$300 million or 20 percent of the capital stock or more: None.

• F. Disposal of real estate with amount exceeding NT$300 million or 20 percent of the capital stock or more: None.

• G. Related party transactions for purchases and sales amounts exceeding NT$100 million or 20 percent of the capital stock or more: Please refer to Attachment 5.

• H. Receivables from related parties with amounts exceeding NT$100 million or 20 percent of capital stock or more: Please refer to Attachment 6.

• I. Financial instruments and derivative transactions: None.

• J. Business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and accounts of any significant transactions between them: Please refer to Attachment 7.

(2) Information on investees

Information of the investees in which the Company directly or indirectly has significant influence or control: Please refer to Attachment 8.

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(3) Information on investments in Mainland China

• A. Investee’s name, main businesses and products, total amount of capital, method of investment, accumulated inflow and outflow of investments from Taiwan, percentage of ownership, investment income or loss, carrying value of the investments, inward remittance of earnings and limits on investments in Mainland China: Please refer to Attachment 9.

• B. Directly or indirectly significant transactions through other regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss, and other events with significant effects on the operating results and financial condition are disclosed as follows:

• a. Accumulated amount and percentage of purchase and related payables at the end of the period: Please refer to Note 7 and Attachment 5.

• b. Accumulated amount and percentage of sales and related receivables at the end of the period: Please refer to Note 7 and Attachment 5.

• c. Amount of property transaction and related gain or loss: Note 7.

• d. Endorsement/guarantee provided to others at the end of the period: Please refer to Attachment 2.

• e. Financing provided to others at the end of the period: Note 7.

• f. Other significant transactions, such as service provided or received: Please refer to Note 7.

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Attachment 1

	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1
1 6 5 2 3 4 8 8 8 9 9	Financing provided to others for theyear ended December 31,2019													(Dollar amount expressed in thousands of NTD unless otherwise specified)
	No. (Note 1)	Financing Company	Counterparty	Financial Statement Account(Note 2)	Related Party	Balance for the Period (Note 3)	Ending Balance (In Thousands) (Note 8)	Actual Amount provided	Interest Rate	Nature of Financing (Note 4)	Transaction Amounts (Note 5)	Reason for Financing (Note 6)	Allowance for Bad Debt	Collateral		Amount for Individual Counterparty (Note 7)	Financial Amount for Financing Company (Note 7)
														Item	Value
	1 1 1 1 1 1 2 3 2 3 3 3 5 4 4 5 3 3	TGCH TGCH TGCH TGCH TGCH TGCH CFG CDG CFG CDG CDG HNG CDG CDG QFG QFG HNG CDG	CFG FPG QFG TJG TCD TAH TYAU TYAU TWAR TYSM HZSS TXY TWAR TJG TQPT QRG ZZSS TTAR	″ ″ Other receivables ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	316,000 $632,000 729,111 2,334,367 2,176,300 1,844,333 2,483,200 91,605 23,964 149,107 505,927 1,343,005 158,131 87,341 107,437 183,973 51,048 183,664	$299,800 299,800 131,932 537,184 1,207,589 524,291 702,739 1,049,300 1,199,200 - - - 81,609 107,437 171,899 13,608 472,722 171,899	$254,830 299,800 524,291 642,779 884,410 - 81,609 1,199,200 - - 131,932 343,797 537,184 1,207,588 107,437 165,987 13,608 159,006	4.03% 4.21% 0.35% 0.35%~4.42% 0.35%~4.13% 4.00%~4.35% 4.00%~4.09% 3.90% 3.96%~4.11% - - - 6.00% 4.13% 2.10% - - -	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- $- - - - - - - - - - - - - - - - -	Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating	- - $- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - -	42,040,544 × 40%= 16,816,218(in thousand) " " " " " 3,166,174 × 50%= 1,583,087(in thousand) " 7,647,201 × 50%= 3,823,601(in thousand) " " " " " 1,312,286 × 50%= 656,143(in thousand) " 3,188,157 × 50%= 1,594,079(in thousand) "	42,040,544 × 40%= 16,816,218(in thousand) " " " " " 3,166,174 × 100%= 3,166,174(in thousand) " 7,647,201 × 100%= 7,647,201(in thousand) " " " " " 1,312,286 × 100%= 1,312,286(in thousand) " 3,188,157 × 100%= 3,188,157(in thousand) "

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Attachment 1

	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1	Attachment 1
11	Financing provided to others for theyear ended December 31,2019(Continue)													(Dollar amount expressed in thousands of NTD unless otherwise specified)
	No. (Note 1)	Financing Company	Counterparty	Financial Statement Account(Note 2)	Related Party	Maximum Balance for the Period	Ending Balance (In Thousands) (Note 8)	Actual Amount provided	Interest Rate	Nature of Financing (Note 4)	Transaction Amounts (Note 5)	Reason for Financing (Note 6)	Allowance for Bad Debt	Collateral		Amount for Individual Counterparty (Note 7)	Financial Amount for Financing Company (Note 7)
														Item	Value
	Total 6 6 7 7 9 8 10	TGF TGF DHG DHG HZSS TAH TXY	TBF TCD FPG QFG TXY FYSS TWAR	″ Other receivables ″ ″ ″ ″ ″	Yes Yes Yes Yes Yes Yes Yes	$1,379,800 1,735,469 100,081 1,720,151 55,192 25,761 7,277	$859,494 1,718,987 48,089 1,607,253 51,570 - -	$730,570 1,117,342 48,089 1,607,253 51,570 - -	5.51% 5.51%~5.62% 4.00% 4.00% 4.13% - -	2 2 2 2 2 2 2	- - $- - - - -	Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating Need for operating	$- - - - - - -	- - - - - - -	$ - - - - - - -	6,079,568 × 50%= 3,039,784(in thousand) " 5,241,736 × 50%= 2,620,868(in thousand) " 1,955,054 × 50%= 977,527(in thousand) 123,471 × 50%= 61,736(in thousand) 2,702,805 × 50%= 1,351,403(in thousand)	6,079,568 × 100%= 6,079,568(in thousand) " 5,241,736 × 100%= 5,241,736(in thousand) " 1,955,054 × 100%= 1,955,054(in thousand) 123,471 × 100%= 123,471(in thousand) 2,702,805 × 100%= 2,702,805(in thousand)
								$10,108,282

Note 1: The Company and its subsidiaries are coded as follows:

1. The Company is coded "0".

2. The subsidiaries are coded starting from "1" in numerical order.

Note 2: If the economic substance of transactions are financing to others, regardless of which component they recognized as in the financial statements, certain transactions are included herein.

Note 3: Maximum balance of the Company and its subsidiaries' financing to others for the year ended December 31, 2019

Note 4: Nature of financing is coded as follows:

1. The financing occurred due to business transactions

2. The financing occurred due to short-term financing

Note 5: Total amount of the financing is disclosed herein if the financing was related to business transactions. The amount shall mean the transaction amount between the lending entity and the borrower within the most recent year.

Note 6: The reasons and counterparties of the financing are addressed herein as the financing associated with short-term capital needs.

Note 7: The process of providing finance to others, the limits to individual counterparties and the total financing limit for the company should be noted, as well as the computations.

Note 8: If a listed company brings the financing proposal to the board of directors according to Paragraph 1, Article 1 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies,

the company still needs to disclose the resolution amount of the board in the balance to disclose the risk, even if the funds are not appropriated yet.

With the return of the funds afterward, the company should disclose the amount returned to reflect the adjusted risk.

If a listed company authorizes the chairman of the board of directors to appropriate or use certain limits of the funds several times in the period of a year according to Paragraph 2, Article 14 of Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the company still needs to disclose the amount approved by the board.

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Attachment 2

Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2	Attachment 2
Endorsement/guaranteeprovided to others for theyear ended December 31,2019 (Dollar amount expressed in thousands of NTD unless otherwise specified)
No. (Note 1)	Endorser/ Guarantor	Endorsee		Limits of Endorsement /Guarantee Amount for	Maximum Balance	Ending Balance (Note 5)	Actual Amount drawn	Amount of Endorsement/	Percentage of Accumulated Endorsement/Guarantee to Net	Limit on the Endorsement/Guarantee Amount(Note 3)	Parent Company Endorsed or Guaranteed for	Subsidiaries Endorsed or	Endorsement or Guarantee for
		CompanyName	Relationship
0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 2 2 3 4 5	TGI TGI TGI TGI TGI TGI TGI TGI TGI TGI TGI TGI TGI TGI TGF TGF TGF CFG CFG DHG TGCH TCD	TAG TGCH CFG FPG TCD HNG TYSM TGF TJG TYAU TGF TXY TAH TBF CFG TBF TCD TTAR TGF QFG TGI TQPT	2 2 2 2 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4 4 3 2	$20,082,041 ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ 3,647,741 ″ ″ 1,899,704 ″ 3,145,042 25,224,326 787,372	$230,500 6,111,625 181,552 464,952 68,505 453,450 179,820 853,922 614,225 781,513 783,650 1,325,474 1,995,500 4,130,918 137,980 451,802 1,287,813 275,960 505,927 735,893 100,000 276,412	$230,500 4,582,135 - - 68,505 158,250 179,820 225,952 466,400 527,082 528,090 874,124 1,387,200 4,130,918 85,949 429,747 1,203,291 257,848 472,722 687,595 50,000 256,845	$151,617 4,582,135 - - - 158,250 89,910 225,952 311,875 508,505 528,090 462,600 1,235,125 3,519,855 42,975 63,611 816,519 162,088 450,106 465,803 50,000 216,072	$ - - - - - - - - - - - - - - - - - - - - - -	1% 11% 0% 0% 0% 0% 0% 1% 1% 1% 1% 2% 3% 10% 1% 7% 20% 8% 15% 13% 0% 20%	3.TGI： 40,164,081120％= 48,196,897(in thousand) 4.TGF： 6,079,568100％= 6,079,568(in thousand) 5.CFG： 3,166,174100％= 3,166,174(in thousand) 6.DHG： 5,241,736100％= 5,241,736(in thousand) 7.TGCH： 42,040,544100％= 42,040,544(in thousand) 8.QFG： 1,312,286100％= 1,312,286(in thousand) 2.Subsidiaries may provide endorsement/guarantee to others in the amount which shall not exceed 100% of their net assets. For endorsement/guarantee to an individual entity, the amount is limited to 60% of the subsidiary’s net assets. 1. In accordance with Article 4 of the Procedures for Endorsement and Guarantee, the Company may provide endorsement/guarantee to others but shall not exceed 120% of its net assets. For endorsement/guarantee to an individual entity, the amount is limited to 50% of the Company's net assets.	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	Y	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

• Note 1: The Company and its subsidiaries are coded as follows:

• The Company is coded "0".

• The subsidiaries are coded starting from "1" in numerical order.

• Note 2: Endorsees are disclosed as one of the following:

• A company with which it does business.

• A company in which the public company directly and indirectly holds more than 50% of the voting shares.

• A company that directly and indirectly holds more than 50% of the voting shares in the public company.

• A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.

• A company that fulfills its contractual obligations by providing mutual endorsements/ guarantees fot their jointly invested company in proportion to their shareholding percentages.

• A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.

• Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

• Note 3: The process of providing finance to others, the limits to individual counterparties and the total financing limit for the company should be noted, as well as the computations.

• Note 4: The maximum amount of the Company and its subsidiaries' endorsement or guarantee to others for the year ended December 31, 2019

• Note 5: The Company bears the responsibility of endorsements or guarantees as long as the ceilings on the amount of guarantees or endorsements are approved by banks. Other occurrences related to endorsement or guarantee shall be included in the balance.

• Note 6: Fill in the actual amount drawn from the balance.

• Note 7: Fill in "Y" if it belongs to "Parent Company Endorsement or Guarantee for the Subsidiaries", "Subsidiaries Endorsement or Guarantee for the Parent Company", or "Endorsement or Guarantee for Entities in China".

• Note 8: All transactions listed above are eliminated in the consolidated financial statements.

83

Attachment 3

Securities held as of December 31, 2019

(Dollar amount expressed in thousands of NTD unless otherwise specified)

Company	Type and Name of the Securities(Note 1)	Relationship (Note 2)	FinancialStatement Account		As of December31,2019	As of December31,2019	As of December31,2019	Remark (Note 4)
				Shares	Carrying Value (Note3)	Percentage of Ownership	Fair Value
TGI CDG FYSS	Securities－ China Development Financial Holdings Chi-Ye Chemical Corp. Chang Hwa Commercial Bank, Ltd. Hua Nan Financial Holdings Co., Ltd. Total Structured deposit－ Nanyang Commercial Bank, Chengdu Branch Financial products－ Commercial Bank of China branch in Fengyang	- - - - - -	Available-for-sale financial assets - non-current ″ ″ ″ Financial assets at fair value through profit or loss - current ″	21,681,340 659,000 314 148 - -	$210,960 46,697 7 3	0.14% 3.30% 0.00% 0.00% - -	$210,960 46,697 7 3 $565,849 $42,974
					$257,667
					$565,849
					$42,974

Note 1: The securities herein shall refer to stocks, bonds, beneficiary certificates and other marketable securities derived from the above items in the scope of IFRS 9-Financial Instruments.

Note 2: Securities issued by non-related parties are not required to fill in this column.

Note 3: For items measured at fair value, the carrying value is the balance of the book value adjusted by fair value valuation deducting accumulated impairment.

For items not measured at fair value, the carrying value is the book value balance of the historical cost or amortized cost after deducting accumulated impairment.

Note 4: Securities with restrictions because of being provided for security, as pledge or under other covenants should state the number of shares or dollar amount provided for security or pledge and the restriction terms.

84

Attachment 4

Individual securities acquired or disposed of with accumulated amount exceeding

NT$300 million or 20 percent of the capital stock for the year ended December 31, 2019$300 million or 20 percent of the capital stock for the year ended December 31, 2019300 million or 20 percent of the capital stock for the year ended December 31, 2019percent of the capital stock for the year ended December 31, 2019ercent of the capital stock for the year ended December 31, 2019pital stock for the year ended December 31, 2019ital stock for the year ended December 31, 2019year ended December 31, 2019ear ended December 31, 2019, 2019 2019

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NT$300 million or 20 percent of the capital stock for the year ended December 31, 2019$300 million or 20 percent of the capital stock for the year ended December 31, 2019300 million or 20 percent of the capital stock for the year ended December 31, 2019percent of the capital stock for the year ended December 31, 2019ercent of the capital stock for the year ended December 31, 2019pital stock for the year ended December 31, 2019ital stock for the year ended December 31, 2019year ended December 31, 2019ear ended December 31, 2019, 2019 2019 (Dollar amount expressed in thousands of NTD unless otherwise specified)
Beginning Balance Acquisition (Note 3) Disposal (Note 3) Ending Balance
Type and Name of the Counterparty Relationship Selling Carrying Gain or Loss
Company Securities (Note 1) Financial Statement Account (Note 2) (Note 2) Shares Amount Shares Amount Shares Amount Value on Disposal Shares Amount
CDG Financial products－ Financial assets at fair value through - - - $478,859 - $376,214 - $880,796 $861,214 $19,582 - $-
Bank of Communications, profit or loss - current
Qingbaijiang Branch 6,141
(Note4)
CDG Structured deposit－ Financial assets at fair value through - - - - - 2,061,786 - 1,502,979 1,479,107 23,872 - 565,849
Nanyang Commercial Bank, profit or loss - current
Chengdu Branch (16,830)
(Note4)
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Note 1: The securities herein shall refer to stocks, bonds, beneficiary certificates and other securities derived from the above items.

Note 2: These columns are filled only if securities are investments accounted for using the equity method.

Note 3: Accumulated amount of securities purchased or sold are calculated at market value to determine whether they exceed NT$300 million or 20% of the capital stock.

Note 4: The amount includes foreign exchange adjustments.

85

Attachment 5

Related party transactions for purchases and sales amounts exceeding NT$100 million or 20 percent of capital stock as of for the year ended December 31, 2019

Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million
or 20percent of capital stock as of for theyear ended December 31,2019 (Dollar amount expressed in thousands of NTD unless otherwise specified)
Company	Counterparty	Relationship	Transaction Details				Details Different from Non- arm's Length Transactions (Note 1)		Notes and Accounts Receivable (Payable)		Remark (Note 2)
			Sale/Purchase	Amount	Percentage of Total Sales or Purchases	Term	Unit Price	Terms	Balance	Percentage of Total Receivable (Payable)
TGI TGI TAH TAH TAH TCD TBF QFG QFG TJG TXY TYAU QFG TGF CFG TTAR TWAR	QFG TGF CFG TTAR TWAR TGF TGF TGUS TPMT TGUS XYES DYK TGI TGI TAH TAH TAH	Parent-subsidiary Parent-subsidiary Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company Other related party Affiliate Company Parent-subsidiary Other related party Parent-subsidiary Parent-subsidiary Affiliate Company Affiliate Company Affiliate Company	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases	$(407,182) (117,920) (260,762) (390,085) (265,615) (172,608) (469,931) (244,961) (101,933) (149,780) (200,777) (216,201) 407,182 117,920 260,762 390,085 265,615	(3)% (1)% (9)% (14)% (10)% (11)% (60)% (12)% (5)% (8)% (6)% (65)% 23 % 4 % 10 % 41 % 35 %	3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months	$- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	$197,159 407 159,987 294,468 176,128 2,051 202,146 24,399 51,778 11,371 63,685 83,235 (197,159) (407) (159,987) (294,468) (176,128)	13% 0 % 15% 27% 16% 0% 51% 3 % 7 % 2% 8% 56% (22)% (0)% (18)% (46)% (56)%

86

Attachment 5

Related party transactions for purchases and sales amounts exceeding NT$100 million

Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million	Attachment 5 Related party transactions for purchases and sales amounts exceeding NT$100 million
or 20 percent of capital stock as of for the year ended December 31, 2019(Continue) (Dollar amount expressed in thousands of NTD unless otherwise specified)
Company	Counterparty	Relationship	Transaction Details				Details Different from Non- arm's Length Transactions (Note 1)		Notes and Accounts Receivable (Payable)		Remark (Note 2)
			Sale/Purchase	Amount	Percentage of Total Sales or Purchases	Term	Unit Price	Terms	Balance	Percentage of Total Receivable (Payable)
TGF TGF TGUS TGUS XYES HNG DHG TJG QFG TAH TAH CFG	TCD TBF QFG TJG TXY SCJ SCJ SCJ SCJ SCJ TRAE SCJ	Affiliate Company Affiliate Company Affiliate Company Affiliate Company Parent-subsidiary Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company	Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	$172,608 469,931 244,961 149,780 200,777 436,498 523,152 185,524 218,689 338,800 214,522 297,090	6 % 17 % 35 % 22 % 100 % 25 % 29 % 13 % 13 % 17 % 11 % 12 %	3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months 3 months	$- - - - - - - - - - - -	- - - - - - - - - - - -	(2,051) (202,146) (24,399) (11,371) (63,685) (239,372) (21,461) (135,956) (82,346) (192,202) (6,336) (58,963)	(1)% (68)% (100)% (60)% (100)% (59)% (9)% (30)% (9)% (30)% (1)% (7)%

Note 1: If the related parties' trading terms are different from the general trading terms, the differences and reasons for such differences should be stated in the "Unit price" and "Terms" columns. Note 2: Transactions with advance receipts and prepayments should state the reasons, the terms of agreements, the amount and the difference from general transactions in the Remark column. Note 3: Paid-in Capital shall refer to the paid-in capital of parent company.If the issuer's stock is not denominated or the denomination is not NT$10,�

the transaction amount of 20% of the paid-up capital shall be calculated as 10% of the equity of f the parent company on the balance sheet.

87

Attachment 6

Receivables from related parties with amounts exceeding NT$100 million

or 20 percent of capital stock as of for the year ended December 31, 2019

(Dollar amount expressed in thousands of NTD unless otherwise specified)

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Overdue Receivables Amount Received
in Subsequent Allowance for
Company Counterparty Relationship Ending Balance (Note 1) Turnover Amount Collection Period Bad Debts
Other receivables
TGCH CFG Parent-subsidiary $279,329 - $- - $- $-
Other receivables
TGCH TJG Parent-subsidiary 647,226 - - - - -
Other receivables
TGCH FPG Parent-subsidiary 527,625 - - - - -
Other receivables
TGCH QFG Parent-subsidiary 305,970 - - - - -
Other receivables
TGCH TCD Parent-subsidiary 1,211,705 - - - - -
Other receivables
TGCH TAH Parent-subsidiary 890,362 - - - - -
Other receivables
QFG QRG Parent-subsidiary 165,987 - - - - -
Other receivables
QFG TQPT Parent-subsidiary 107,437 - - - - -
Other receivables
CDG TWAR Affiliate Company 1,219,296 - - - - -
Other receivables
CDG HZSS Affiliate Company 132,009 - - - - -
Other receivables
CDG TXY Affiliate Company 540,401 - - - - -
Other receivables
CDG TTAR Affiliate Company 355,828 - - - - -
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88

Attachment 6

Receivables from related parties with amounts exceeding NT$100 million

Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million	Receivables from related parties with amounts exceeding NT$100 million
or 20percent of capital stock as of for theyear ended December 31,2019(Continue) (Dollar amount expressed in thousands of NTD unless otherwise specified)
Company	Counterparty	Relationship	EndingBalance(Note 1)	Turnover	Overdue Receivables		Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Collection
TGF TGF DHG HNG TGI CFG TBF TAH TAH TAH	TCD TBF FPG TJG QFG TTAR TGF CFG TTAR TWAR	Affiliate Company Affiliate Company Affiliate Company Affiliate Company Parent-subsidiary Affiliate Company Affiliate Company Affiliate Company Affiliate Company Affiliate Company	Other receivables $731,859 Other receivables 1,137,308 Other receivables 1,644,669 Other receivables 180,397 Accounts receivable 197,159 Accounts receivable 123,247 Accounts receivable 202,146 Accounts receivable 159,987 Accounts receivable 294,468 Accounts receivable 176,128	- - - - - - - - - -	$- - - - - - - - - -	- - - - - - - - - -	$- - - - - - - - - -	$- - - - - - - - - -

Note 1: Fill in information such as related parties account receivables, notes receivable, other receivables, etc.

Note 2: Paid-in Capital shall refer to the paid-in capital of parent company.If the issuer's stock is not denominated or the denomination is not NT$10,

the transaction amount of 20% of the paid-up capital shall be calculated as 10% of the equity of f the parent company on the balance sheet.

89

Attachment 7 Significantintercompany transactionsforthe yearendedDecember31,2019	Attachment 7 Significantintercompany transactionsforthe yearendedDecember31,2019	Attachment 7 Significantintercompany transactionsforthe yearendedDecember31,2019	Attachment 7 Significantintercompany transactionsforthe yearendedDecember31,2019	(Dollaramount expressedinthousands ofNTDunless otherwise specified)	(Dollaramount expressedinthousands ofNTDunless otherwise specified)	(Dollaramount expressedinthousands ofNTDunless otherwise specified)	(Dollaramount expressedinthousands ofNTDunless otherwise specified)
No. (Note 1)	Related Party	Counterparty	Relationship with the Company (Note 2)	Transaction Details
				Account	Amount	Terms	Percentage(Note 3)
0 0 1 1 1 2 3 4 5 6 0 7 3 1 1 1 8 8 8 8 8 8 4 4 9 9 9 9 10 10 11 12	TGI ″ TAH ″ ″ TCD TBF QFG TJG TXY TGI CFG TBF TAH ″ ″ TGCH ″ ″ ″ ″ ″ QFG ″ CDG ″ ″ ″ TGF ″ DHG HNG	QFG TGF CFG TTAR TWAR TGF TGF TGUS TGUS XYES QFG TTAR TGF CFG TTAR TWAR CFG TJG FPG QFG TCD TAH QRG TQPT TWAR HZSS TXY TTAR TCD TBF FPG TJG	1 1 3 3 3 3 3 3 3 1 1 3 3 3 3 3 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3	Sales revenues ″ ″ ″ ″ ″ ″ ″ ″ ″ Accounts receivable - related parties ″ ″ ″ ″ ″ Other receivables - related parties ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	$407,182 117,920 260,762 390,085 265,615 172,608 469,931 244,961 149,780 200,777 197,159 123,247 202,146 159,987 294,468 176,128 279,329 647,226 527,625 305,970 1,211,705 890,362 165,987 107,437 1,219,296 132,009 540,401 355,828 731,859 1,137,308 1,644,669 180,397	The same as export sales 〃 The same as domestic sales 〃 〃 〃 〃 The same as export sales 〃 The same as domestic sales	1% 0% 1% 1% 1% 0% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% 0% 1% 1% 0% 0% 1% 0% 1% 0% 1% 1% 2% 0%

Note 1: The Company and its subsidiaries are coded as follows:

2 Subsidiaries are coded consecutively starting from "1" in the order presented in the table above. Note 2: Transactions are categorized as follows:

Note 3: The percentage is determined by the ratio of the transaction amount to the consolidated revenues or the total assets. Items on the balance sheet are calculated by the ending balance to total consolidated assets; items on the income statement are calculated by their cumulative balance to the total consolidated income.

Note 4: The disclosure of significant intercompany transactions in this attachment is determined by the company based on the materiality.

90

Attachment 8

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Names, locations and related information of investee companies as of December 31, 2019 (Dollar amount expressed in thousands of NTD unless otherwise specified)
Initial Investment Investment as of December 31, 2019 Profit or Loss Gain or Loss
Investee Beginning Percentage of of Investee on Investment
Company (Note 1,2) Area Within Nature of Business Ending Balance Balance Shares Ownership Carrying Value (Note 2) (Note 2,3) Remark
TGI TGUS US Investment in QRG and selling of glasses. $17,676 $17,676 4,612 100.00% $391,684 $31,482 $31,482
USD 461 USD 461
″ TGCH Bermuda Investment in QRG, QFG, YNSS, TGF, CFG, 41,724,578 41,724,578 1,354,033,322 93.98% 39,480,570 (358,069) (333,951)
FYSS, CDG, DHG, HZSS, HNG, TKG, TJG,
FPG, TXY, TTAR, TYAU, TAH, TYSM, USD 1,343,151 USD 1,343,151
TWAR, TCD, TBF, and SCH.
″ TAG Taiwan Investment in TAGH and selling of auto glasses. 263,582 263,582 26,100,000 87.00% 184,431 (80,132) (69,822)
″ TVIG Taiwan Selling vacuum insulation glass 438,750 438,750 43,875,000 65.00% 164,673 (43,733) (28,427)
TGCH SCH Hong Kong Investment in Shihlien Chemical Industrial 7,861,681 7,861,681 1,904,445,986 43.99% 4,219,840 727,343 352,724
(Jiangsu) Co., Ltd. (SCJ) and Huaian Shihyuan USD 252,088 USD 252,088
Brine Co., Ltd. (HSB).
TAG TAGH Bermuda Investment in TYAU. 188,571 188,571 6,000,000 100.00% 66,979 (17,297) (17,297)
USD 6,000 USD 6,000
----- End of picture text -----

Note 1: A listed company which has a foreign holding company that uses the consolidated financial statements as the master financial report according to its local regulations may disclose information regarding foreign investees only to the extent of the holding company.

Note 2: Fill in information following the instruction below for matters not applied in Note 1 indicated above:

(1) The columns of "Name of investee", "Area Within", "Nature of Business", "Initial Investment" and "Investment as of December 31, 2019" should fill in information of the reinvestment of the listed company,

reinvestment of every direct or indirect reinvestment of the investee, and disclose the relationship of the investees with the Company in the Remark column.

(Such as subsidiary or sub-subsidiary)

(2) The column of "Profit or Loss of Investee" should fill in the current profit or loss of the investees.

(3) The column of "Gain or Loss on Investment" only require profit / loss of the direct investees and all investees accounted for under the equity method

When filling in the above items, make sure the profit / loss of direct investee subsidiaries include the profit or loss of their reinvestments that are required to be recognized.

91

Attachment 9

Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9
Investment in Mainland China as of December 31,2019
Investee	Nature of Business	Total Amount of Paid-in Capital	Investment Method (Note 1)	Accumulated Outflows of Investment from Taiwan as of January 1, 2019	Investment Flows		Accumulated Outflows of Investment from Taiwan as of December 31,2019	Profit or Loss of Investee company	Percentage of Ownership	Profit or Loss on Investment (Note 2(ii)c.)	Carrying Value as of December 31,2019	Accumulated Inward Remittance of Earnings as of December 31,2019
					Outflow	Inflow
QRG	Manufacturing of photovoltaic glass	$878,204 USD 29,293 (Note20)	(i)	$32,199 USD 1,074	$- -	$- -	$32,199 USD 1,074	$(40,670)	94.96%	$(38,620)	$108,352	$-
QFG	Manufacturing of flat glasses	2,632,244 USD 87,800 (Note14、Note23)	(ii)	1,420,722 USD 47,389	- -	- -	1,420,722 USD 47,389	(167,352)	93.98%	(157,278)	1,233,286	-
YNSS	Manufacturing of silica sand	120,190 USD 4,009 (Note14)	(ii)	58,131 USD 1,939	- -	- -	58,131 USD 1,939	(20,840)	59.56%	(12,412)	86,680	-
CFG	Manufacturing of flat glasses & low-emission glasses	2,818,120 USD 94,000 （Note8、Note25）	(ii)	2,278,480 USD 76,000	- -	- -	2,278,480 USD 76,000	(23,695)	93.98%	(22,268)	2,975,571	-
FYSS	Manufacturing of silica sand	128,914 USD 4,300 (Note6)	(ii)	62,958 USD 2,100	- -	- -	62,958 USD 2,100	81,358	93.98%	76,460	193,018	-
TGF	Manufacturing of glass fabric & fiber	3,297,800 USD 110,000 (Note13)	(ii)	2,731,658 USD 91,116	- -	- -	2,731,658 USD 91,116	(125,741)	93.98%	(118,171)	5,713,578	-
CDG	Manufacturing of flat glasses & low-emission glasses	2,098,600 USD 70,000 (Note12)	(ii)	1,465,872 USD 48,895	- -	- -	1,465,872 USD 48,895	543,072	93.98%	510,379	7,186,840	-
HZSS	Manufacturing of silica sand	314,790 USD 10,500	(ii)	314,790 USD 10,500	- -	- -	314,790 USD 10,500	(37,287)	93.98%	(35,042)	116,038	-
HNG	Manufacturing of flat glasses & low-emission glasses	3,177,880 USD 106,000 (Note11)	(ii)	2,653,230 USD 88,500	- -	- -	2,653,230 USD 88,500	(17,743)	93.98%	(16,675)	2,996,230	-
DHG	Manufacturing of flat glasses	2,398,400 USD 80,000 (Note9、Note14、Note22)	(ii)	1,499,000 USD 50,000	- -	- -	1,499,000 USD 50,000	257,349	93.98%	241,857	4,926,184	-
TJG	Manufacturing of flat glasses & low-emission glasses	2,878,080 USD 96,000 （Note10、Note24）	(ii)	1,768,820 USD 59,000	- -	- -	1,768,820 USD 59,000	(172,469)	93.98%	(162,087)	589,808	-
FPG	Manufacturing of photovoltaic glass & cell module assembly	2,486,181 USD 82,928 (Note21)	(ii)	1,558,960 USD 52,000	- -	- -	1,558,960 USD 52,000	(417,937)	93.98%	(392,777)	(511,210)	-
SCJ	Manufacturing of soda ash	23,984,000 USD 800,000 (Note15)	(ii)	4,784,568 USD 159,592	- -	- -	4,784,568 USD 159,592	1,407,961	41.34%	582,051	7,834,989	-
HSB	Manufacturing Brine	959,360 USD 32,000 (Note16)	(ii)	179,880 USD 6,000	- -	- -	179,880 USD 6,000	139,400	41.34%	57,628	692,073	-
TXY	Manufacturing of flat glasses	2,998,000 USD 100,000 (Note17)	(ii)	1,948,700 USD 65,000	- -	- -	1,948,700 USD 65,000	268,433	93.98%	252,274	2,540,097	-
TTAR	Manufacturing of low-emission glasses	1,049,300 USD 35,000	(ii)	1,049,300 USD 35,000	- -	- -	1,049,300 USD 35,000	204,671	93.98%	192,350	769,853	-

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Attachment 9

Attachment 9	Attachment 9	Attachment 9	Attachment 9	Attachment 9
Investment in Mainland China as of December 31,2019(Continue)					(Dollar amount expressed in thousands of NTD unless otherwise specified)
Investee	Nature of Business	Total Amount of Paid-in Capital	Investment Method (Note 1)	Accumulated Outflows of Investment from Taiwan as of January 1, 2019	Investment Flows		Accumulated Outflows of Investment from Taiwan as of December 31,2019	Profit or Loss of Investee company	Percentage of Ownership	Profit or Loss on Investment (Note 2(ii)b.)	Carrying Value as of December 31,2019	Accumulated Inward Remittance of Earnings as of December 31,2019
					Outflow	Inflow
TAH	Manufacturing of flat glasses	$2,548,300 USD 85,000	(ii)	$2,548,300 USD 85,000	$- -	$- -	$2,548,300 USD 85,000	$59,827	93.98%	$56,226	$1,837,359	$-
TYSM	Manufacturing of solar glasses	1,948,700 USD 65,000 (Note18)	(ii)	1,461,525 USD 48,750	- -	- -	1,461,525 USD 48,750	(123,129)	70.49%	(86,793)	375,307	-
TWAR	Manufacturing of low-emission glasses	1,049,300 USD 35,000	(ii)	1,049,300 USD 35,000	- -	- -	1,049,300 USD 35,000	(29,807)	93.98%	(28,012)	322,528	-
TYAU	Manufacturing of auto glasses	2,038,640 USD 68,000 (Note19)	(ii)	1,043,304 USD 34,800	- -	- -	1,043,304 USD 34,800	(191,688)	55.77%	(106,905)	451,579	-
TBF	Manufacturing of glass fabric	1,798,800 USD 60,000	(ii)	1,798,800 USD 60,000	- -	- -	1,798,800 USD 60,000	(693,983)	93.98%	(652,205)	673,794	-
TCD	Manufacturing of glass fabric	2,938,040 USD 98,000 (Note7)	(ii)	2,788,140 USD 93,000	- -	- -	2,788,140 USD 93,000	(257,398)	93.98%	(241,903)	2,412,677	-
(Dollar					amount expressed in thousands of NTD;thousands of USD) n Investment Amount to Mainland China (Note 5)
Accumulated Investment in Mainland China as of December 31, 2019		Investment Amount Authorized by Investment Commission, Ministry of Economic Affairs (Note 4)		Limit o	n Investment Amount to Mainland China
$34,496,637 USD 1,150,655		USD 1,334,061 and CNY 90,356 $40,383,451			(Note 5)

Note 1: The methods for engaging in investment in Mainland China include the following:

• (i) Direct investment in Mainland China companies.

(ii) Investment in Mainland China companies through a company invested and established in a third region

• (iii) Other methods

Note 2: In the column of profit or loss on investment:

• (i) The investment still in preparation and not generating profit or loss yet should be noted.

• (ii) The gain or loss on investment were determined based on the following:

• a. The financial report was audited and certified by an international accounting firm in cooperation with an R.O.C. accounting firm

• b. The financial statements certificated by the CPA of the parent company in Taiwan

• c. Others

Note 3: The amount of this attachment are expressed in New Taiwan Dollars.

Note 4: The investment amount was authorized by Investment Commission, Ministry of Economic Affairs.

Note 5: The Company does not have a limit on investment in Mainland China since it qualified as operation headquarter approved by the Industrial Development Bureau, Ministry of Economic Affairs. Note 6: The TGCH invested the other USD 2,200 thousand to the entity with its own capital.

Note 7: The TGCH invested the other USD 5,000 thousand to the entity with its own capital.

Note 8: The other USD 12,000 thousand was invested by third party through the TGCH.

Note 9: Third party invested USD 3,000 thousand to the entity through the TGCH.

Note 10: Third party invested USD 12,000 thousand to the entity through the TGCH.

Note 11: Third party invested USD 17,000 thousand to the entity through the TGCH; TGCH also invested to the entity USD 500 thousand with its own capital. Note 12: Third party invested USD 21,000 thousand to the entity through the TGCH.

Note 13: Third party invested USD 17,000 thousand to the entity through the TGCH.

Note 14: The QFG, YNSS, and DHG invested USD 27,800 thousand, USD 592 thousand, and USD13,000 thousand, their unappropriated earnings, respectively to the subsidiary. Note 15: The SCH, the investee of the TGCH, invested USD 640,408 thousand to the entity with its and third party’s capital. Note 16: The SCH invested USD 26,000 thousand to the entity with third party’s capital.

Note 17: The USD 35,000 thousand earnings distributed by CFG and CDG was invested by TGCH. The Company did not provide any funding. Note 18: The USD 16,250 thousand was invested by the third party. The Company did not provide any funding.

Note 19: The TAGH and third party invested additional USD 6,000 thousand and USD 27,200 thousand to the entity, respectively. Note 20: The QFG and TGUS invested USD 23,319 thousand and USD 4,774 thousand to the entity, respectively.

Note 21: The FPG raised capital of USD 30,928 thousand through debt for equity swap. The Company did not provide any funding. Note 22: The DHG raised capital of USD 14,000 thousand through debt for equity swap. The Company did not provide any funding.

Note 23: The QFG raised capital of USD 5,000 thousand through debt for equity swap. The Company did not provide any funding.

Note 24: The TJG raised capital of USD 25,000 thousand through debt for equity swap. The Company did not provide any funding.

Note 25: For the period ended September 30, 2019, the Company was merged with TKG. CFG is the surving company, and TKG is the dissolved company.

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